Oil News: Prices Pull Back Amid Profit-Taking

Oil Moves Lower As Israel Did Not Retaliate Against Iran

Oil prices pulled back as traders waited for Israel’s response to Iran’s attack. Yesterday, oil markets rallied amid reports indicating that Israel was close to the final decision on its retaliation against Iran.

However, nothing happened overnight, so traders are taking some profits off the table. It remains to be seen whether oil markets will gain additional downside momentum as traders may want to keep their exposure to oil for the weekend.

Traders are also waiting for China’s Finance Ministry press conference, which will take place on October 12. Some analysts expect that China will unveil additional stimulus measures.

From a big picture point of view, oil markets remain worried that China’s stimulus will not provide sufficient support to the economy. In case the country reveals additional measures, oil prices may get more support.

It should be noted that developments in the Middle East will remain the key catalyst for oil markets in the near term regardless of what happens in China.

Technical Analysis

WTI oil faced resistance near the $76.00 level and pulled back. The pullback was not strong as traders remained focused on the situation in the Middle East. A move above the $76.00 level will push WTI oil towards the nearest resistance at $77.00 – $77.50. On the support side, a move below the recent lows at $74.50 will open the way to the test of the support level at $72.00 – $72.50.

Brent oil settled near the $79.00 level amid profit-taking after the recent rebound. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge. If Brent oil settles above $79.00, it will move towards the resistance level at $81.00 – $81.50.

For a look at all of today’s economic events, check out our economic calendar.