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WTI crude oil futures settled lower at $85.01 per barrel, dropping $2.05 or 2.35% on the day after trading between a high of $86.57 and a low of $84.36. The pullback was driven by profit-taking following recent gains and relief that newly announced U.S. sanctions against Iran did not immediately include strict secondary measures against major trade partners like China. Additionally, persistent fundamental headwinds such as rising U.S. crude inventories, which surged by 4.4 million barrels according to recent EIA data, and downgraded demand forecasts from the IEA and OPEC weighed heavily on prices. From a technical perspective, today's decline leaves WTI crude in a relatively neutral setup within short-term boundaries. Prices settled between the 100-hour moving average at $85.49 and the 200-hour moving average at $84.07. Dropping below the 100-hour MA gives short-term sellers a slight technical advantage, though the 200-hour MA continues to act as crucial downside support that prevents bears from asserting complete control. Looking ahead, traders must watch the key technical levels at $84.07 and $85.49 for clear breakout confirmation. A sustained break below $84.07, along with the 50% retracement level at $83.89, could expose the next major downside target near $81.61. On the upside, a reclaim of $85.49 would open the door toward the 61.8% Fibonacci level at $86.17, followed by a critical resistance zone between $87.67 and $87.78 near the 100-day moving average.
