West Texas Intermediate crude oil futures settled at $82.81, down $0.57 or -0.68%.
The price fell after trading at a two-month high of $84.38 earlier today. This was just $0.08 below the April 26 high of $84.46 (see chart above).
On the downside, it is the 61.8% retracement level of the move down from the April high to the June low of $81.84. This level was close to the highs that prevailed from June to the end of June, before yesterday’s rally.
Crude Oil Technical Levels in Play
Today’s decline came on the back of easing concerns about supply disruptions due to Hurricane Beryl and despite escalating tensions in the Middle East.
The forecast now indicates that the hurricane is unlikely to significantly impact offshore oil production.
Meanwhile, geopolitical concerns have been heightened after Israel said 18 soldiers were wounded in a drone attack by Iran-backed Hezbollah.
On the demand side, U.S. gasoline consumption is expected to peak with increased travel for the Independence Day holiday, and is expected to be 5.2% higher than in 2023.
Recently, oil prices have been supported by OPEC+ extending oil production cuts until 2025.