WITUSD Chart Technical Outlook Crude Oil (XTI/USD) struggles after Israel-Lebanon ceasefire, support at $68.02 eyed.
The beginning of the end of the Middle East wars? That is the hope, after Israel and Lebanon agreed to cease hostilities. Will Hezbollah hold its fire? Will the truce hold? That is an open question, but markets can now assess that the chances of a wider war involving Iran have dropped significantly. That means a lower chance of a disruption in oil supplies.
What about demand? The US economy is doing well but China is struggling to revive growth – the picture has not materially changed. I expect oil prices to come under pressure with this one factor, Israel vs. Lebanon, seemingly out of the picture.
US data coming out today will likely show the world’s largest economy is doing well, but that is already in the price. While many data points come out at once, there is no single outstanding figure.
WTI Crude Oil has support at $68.02, followed by $66.57. Resistance is at $70.28, then $71.52. The broad trend is side
