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

Due to supply constraints across the Strait of Hormuz, crude oil ended Friday's trading session higher. Sanctions threats intensified on both sides, the temporary U.S.-Iran accord expired without further negotiations, and strait traffic fell to single digits on Thursday. Although the benefits were small, the message was evident. The market closed above a headline on Iran that caused late selling. Crude received additional support from refined goods unrelated to the Middle East. Both contracts maintained the climb, and WTI ended the session close to the July major peak. This week marked the expiration of the short-term deal between the United States and Iran that was intended to reduce tensions and reopen the Strait of Hormuz. Neither party took any action to start fresh negotiations. The one development that could swiftly eliminate the risk premium was thus lost from the oil market. Just seven commodity ships passed through the strait on Thursday. That was significantly less than average traffic and half as much as the day before. Traffic has been operating at extremely low levels for weeks, according to ship tracking data. Approximately one-fifth of the world's oil and gas supplies passed through the waterway prior to the war starting earlier this year. At $88.07, October WTI crude oil futures ended Friday higher and within striking distance of the major top on July 23. The upswing will be confirmed if this level is reached. Reaching this level will confirm the upswing. Reaching this level will confirm the upswing. Reaching this level will confirm the upswing. Reaching this level will confirm the upswing. Reaching this level will confirm the upswing. Look for the rally to potentially continue into the primary high at $91.23 on May 18 if it generates sufficient upside momentum. The key downside level to monitor is $83.45. The momentum will change to the downside if a transaction passes through this level.