FX.co ★ Retired-Mogambo | CL/Crude Oil

During Monday's early European trading hours, the US benchmark for crude oil, West Texas Intermediate (WTI), is trading at about $88.45. Following the Kuwaiti military's accusations of a missile and drone attack, some purchasers are drawn to the WTI price. The success of the US-Iran peace pact and happenings in the Middle East will be eagerly watched by traders. Following the sounding of air raid sirens and the issuance of emergency alerts across the country, Kuwait's military forces reportedly told The Guardian on Monday that the nation's air defense systems were intercepting hostile missiles and drone attacks. US Central Command (Centcom) announced that it had carried out "strikes on Iranian radar and command and control sites for drones" over the weekend, just minutes after Kuwait reported being attacked. Iran's Islamic Revolutionary Guards Corps (IRGC) claimed to have attacked Sirik Island in southern Iran by targeting a US airbase. In the short run, rising tensions in the Middle East may increase concerns about supply interruption and hike the price of WTI. Later on Tuesday, the American Petroleum Institute (API) report is scheduled to be released. Stronger demand is indicated by a larger-than-anticipated crude oil inventory draw, which might raise the WTI price; on the other hand, a larger-than-anticipated build suggests either surplus supply or weaker demand, which could lower the WTI price. The lower Bollinger Band adds intermediate demand below spot, and WTI US Oil maintains a positive near-term tone in the daily chart while remaining above the 100-day simple moving average (SMA). Initial resistance appears on the upside close to the high of $93.57 on May 26. The Bollinger middle band at approximately $95.00 is the next obstacle, which is followed by the psychological level at 100.00 and the upper Bollinger Band at approximately $104.76. The current area around the lower Bollinger Band at $85.20 serves as immediate support on the downside, while the 100-day SMA at $82.56 serves as a more major bullish line in the sand. A sustained breach below that zone would considerably weaken the dominant positive bias.