Commodities▲ Bullish
Middle East Supply Risk Holds WTI Above EMA Support Zone
WTI crude drifts lower in thin trade as traders watch for a new Middle East headline. The 50-day and 200-day EMA band holds support with no catalyst to break the $83-$92 range.
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Crude oil drifted lower in early Thursday trading, with the market caught between Middle East supply fears and the absence of a new headline to break the range.
Light Sweet Crude Oil slipped a few cents in thin action. The 50-day and 200-day exponential moving averages have converged in a tight band, acting as technical support that has held for three straight sessions. Traders said the drift lower reflected position-squaring ahead of U.S. producer price index data due later Thursday, though few expected the PPI print to drive a sustained move.
“This is a headline market,” said one London-based oil trader. “Without a new Strait of Hormuz story, it just sits here.”
The Persian Gulf chokepoint remains the central variable. Roughly 20% of global oil transits the Strait of Hormuz, and any escalation involving Iran or U.S. naval patrols could reroute tankers and lift prices. For now, the shipping lanes are open and the U.S. has not changed its posture, traders said.