WTI crude oil futures settled at $85.01 on Monday, down $2.05, or 2.35%, after traders weighed delayed secondary sanctions tied to Iran.
The contract touched a low of $84.36 and reached a high of $86.57 during the session. Middle East tension remained a key market driver. However, the delay in tougher secondary sanctions on countries that trade with Iran helped calm supply concerns.
Traders also took profits after last week’s gains. In addition, the United States announced a new campaign to further isolate Iran economically. Yet the first steps did not immediately bring in harsher secondary sanctions on countries still buying Iranian oil.
That move appeared to ease worries that large volumes of Iranian crude could quickly leave the market. The report also said Iran continues to export oil to China despite existing U.S. sanctions.
WTI Crude Oil Futures Face Demand Pressure
Softer demand views and higher U.S. stockpiles also weighed on prices. Last week’s EIA report showed U.S. commercial crude inventories rose by 4.4 million barrels. That compared with expectations for a 600,000-barrel draw.
Meanwhile, gasoline demand softened. Both the IEA and OPEC also cut their 2026 oil demand forecasts recently. As a result, the market faced added pressure beyond the Iran headlines.
Key Technical Levels in Focus
The drop left WTI in a more neutral spot going into the new trading day. Price settled between its 200-hour moving average at $84.07 and its 100-hour moving average at $85.49. Because the market moved back below the 100-hour average, sellers held a slight near-term edge.
However, staying above the 200-hour average kept sellers from gaining firmer control. A break below $84.07, followed by the 50% midpoint from the July high at $83.89, would strengthen the bearish bias. Below those levels, the next downside target stands near $81.61.
On the upside, buyers need to retake the 100-hour moving average at $85.49. That would bring the 61.8% retracement at $86.17 back into focus. Above $86.17, attention would turn to the 100-day moving average near $87.78, after last Thursday’s high stalled at $87.67.
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Source: InvestingLive
