Oil prices retreat below $79.00 as geopolitical risks fail to sustain a rally past key resistance at $80.00 per barrel.
West Texas Intermediate crude oil fell nearly 1% to below $79.00 after failing for the third time to breach the $80.00 mark, where the 50-day Exponential Moving Average acts as resistance. The rebound from early-July lows near $67.00 has stalled despite heightened tensions in the Middle East.
Recent escalations, including U.S. strikes on tankers near Iran and Tehran’s retaliatory actions, would have added a $30.00 premium to prices earlier this year. However, traders remain cautious after WTI surged to $107.00 in spring before collapsing to $67.00 following a June peace deal that reopened the Strait of Hormuz.
The market now demands evidence of physically missing barrels before pricing in another geopolitical premium, as prior volatility has tempered expectations for sustained gains.