WTI Oil retreats for third day on US-Iran diplomacy hopes, Hormuz risks cap downside

💡 DMK Insight

WTI crude oil’s drop to around $89.10 signals potential volatility ahead. A 3.93% decline in a single day is significant, especially as traders are closely watching for any signs of demand destruction or shifts in supply dynamics. With OPEC+ meetings looming, any hints of production cuts or increases could further influence price action. If WTI breaks below the $88 level, it could trigger more selling pressure, while a rebound above $90 might attract buyers looking for a quick recovery. Keep an eye on broader economic indicators, like U.S. inventory reports and global demand forecasts, as these will shape market sentiment. On the flip side, this decline could also present a buying opportunity for those who believe in a longer-term bullish trend, especially if geopolitical tensions or supply chain disruptions arise. Watch for key support levels around $87.50 and resistance at $90.50 to gauge the next moves in this volatile market.