Crude Oil prices saw a downturn on Thursday due to eased tensions from US-Iran discussions resuming. West Texas Intermediate (WTI) fell by 1.5%, or $0.95 per barrel, as both nations confirmed scheduled talks to address nuclear and trade issues. <\/p>\n
WTI traded at $63.14, above the 50-day EMA at $60.27 and the 200-day EMA at $62.23, keeping a firm near-term tone. A close below the 200-day EMA might lead to a retracement to the 50-day EMA, while the slow stochastic at 67.15 suggests digesting momentum rather than reversing trends.<\/p>\n
WTI is a high-quality Crude Oil from the US, easily refined and serving as a market benchmark. Supply and demand dynamics, global growth, political instability, and OPEC’s decisions influence WTI prices. <\/p>\n
Weekly Oil inventory reports by the API and EIA also impact WTI pricing, with EIA data deemed more reliable. Inventory data reflecting increased demand can raise prices, whereas higher supply can reduce them. <\/p>\n
OPEC’s production decisions affect WTI prices, with tightened supply leading to higher prices, while increased production typically lowers them. The expanded OPEC+ group includes notable non-OPEC member Russia.<\/p>\n
We are seeing a temporary easing in crude oil prices, with WTI testing the $63 level as geopolitical tensions cool. This is a short-term reaction to the US and Iran agreeing to proceed with scheduled talks. This pullback allows us to assess the underlying market structure away from the recent headline noise.<\/p>\n
Despite this dip, the technical picture remains firm for now, as the price holds above the key 200-day moving average at $62.23. A break below this level could signal a deeper retracement toward the $60 mark. For the coming weeks, we will be watching if this level acts as solid support, which would suggest the underlying uptrend is still intact.<\/p>\n
Adding to this short-term pressure, the latest Energy Information Administration (EIA) report for the week ending January 31, 2026, showed a surprise build in crude inventories of 1.2 million barrels. This was contrary to analyst expectations of a draw, suggesting a momentary slack in demand. These weekly inventory reports will be critical to watch for signs of this trend continuing or reversing.<\/p>\n
However, we should not lose sight of the bigger supply picture shaped by OPEC+ decisions from late 2025. The group\u2019s commitment to maintaining voluntary production cuts of 2.2 million barrels per day through the first quarter of 2026 is a significant factor that should limit deep price declines. These supply constraints provide a strong floor under the market, making any significant drop unlikely without a major change in policy.<\/p>\n
On the demand side, the outlook remains robust following the strong 3.3% annualized GDP growth the US posted in the fourth quarter of 2025. This economic strength suggests that underlying energy consumption will remain healthy. Strong economic indicators from major consumers like the US will continue to support prices against short-term sentiment shifts.<\/p>\n
We have seen situations like this before, particularly during geopolitical negotiations in the mid-2010s, where headline-driven dips were often short-lived. The broader trend was ultimately dictated by the fundamental balance of global supply and demand. Therefore, traders should consider whether this easing is a fundamental shift or simply a temporary reaction in an otherwise tight market.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Crude Oil dips as US-Iran talks resume; WTI holds firm above moving averages, momentum remains steady.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-41103","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/41103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=41103"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/41103\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=41103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=41103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=41103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}