Oil prices remain lower on Tuesday after the sharp drop on Monday. WTI crude oil consolidates around the $86 area while Brent crude oil consolidates around the $94.50 level. The latest decline in oil prices came in response to fresh comments from President Donald Trump who said that he would hold off on any new strikes against Iran. These comments eased fears of further disruption of oil shipments in Middle East.
The latest production data from OPEC also point to better supply. The group pumped 1.38 million more barrels a day in October than in September. Saudi Arabia, Kuwait and Iraq led the increase. But the U.S. plans to keep the blockade on Iranian ports and attacks near the Strait of Hormuz still threaten tanker traffic. But the risk in the oil market is not gone. The prices may rebound again if there are renewed tensions and attacks continue in the Middle East.
WTI Price Forecast: Break Below 200-Day SMA Suggests Negative Trend
The monthly chart for WTI oil shows that the price failed to break above the $106 area. This area has been the key resistance in WTI crude oil market. This resistance is defined by descending channel pattern that stretches from the highs of July 2008.
A break above $106 may open the way for further upside towards the $125-$130 area. But a failure to hold the $80 level may trigger further downside in WTI crude oil. The RSI remains above the midline which suggests a positive trend in WTI oil.
The daily chart for WTI oil also shows that the price closed below 200-day SMA at $87 on Monday. This suggests that WTI oil may remain under pressure in the short term and move toward lower support at $78.
This support is defined by the ascending trend line that stretches from the lows of Dec. 2025. A break below $78.00 may push oil prices further down toward the $60 area. But WTI crude oil needs to build positive momentum above $93 to suggest another rally towards the $104 to $106 area. The RSI also remains below the midline and suggests that further downside may develop in the next few days.
Brent Oil Price Forecast
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See all Brent Oil forecastsBrent Price Forecast: Below $95, Prices Could Fall to $80
The daily chart for Brent oil shows that the price remains under pressure after hitting the key resistance of $120 in October. The price has also broken below the 200-day SMA at the $98.30 level and continues to trade below the $95 area.
The breakdown from the support level suggests a move towards the $80 support. This support is seen by the ascending trendline that stretches from the lows of December 2025. But the RSI is now approaching the oversold level which suggests that Brent oil may look to form a bottom in the short term.
But the price action suggests some more downside in the short term. The chart below shows that the Brent oil has remained in volatile ranges since the U.S. war began. These ranges remain between $72 and $120.
Bottom Line
Oil prices continue to drop on Tuesday and remain under pressure as high OPEC output and lower tensions between the US and Iran ease fears about supply. A break below $80 for WTI oil may push the price to $78. But a break above $93 may open the way for a rally to $104-$106. Brent oil may drop to $80 if the price remains below $95. But if there are any new attacks in the Strait of Hormuz, that may slow the traffic and create rebound in oil prices.