Crude Oil Futures Settle at $85.01 as Sanctions, Demand Concerns Weigh on Prices
Key Takeaways
- •WTI crude oil futures settled at $85.01 a barrel, falling $2.05, or 2.35%, on the session.
- •Profit-taking after recent gains and the latest U.S. sanctions actions against Iran helped pressure crude prices.
- •The U.S. did not immediately impose tougher secondary sanctions, which reduced concern about a sudden loss of Iranian crude supply from the market.
- •U.S. commercial crude inventories rose by 4.4 million barrels last week, far more than the expected 600,000-barrel decline.
- •WTI is trading between the 200-hour moving average at $84.07 and the 100-hour moving average at $85.49, with a break of either level likely to guide the next direction.
WTI crude oil futures settled at $85.01, down $2.05, or 2.35%, on the day. The session low was $84.36, while the high reached $86.57.
Several fundamental factors weighed on crude prices. First, there was some profit-taking after last week’s gains, particularly ahead of the U.S. announcement of additional sanctions against Iran.
Second, although the U.S. launched a new campaign aimed at further isolating Iran economically, the initial measures stopped short of immediately imposing tougher secondary sanctions on countries that continue to trade with Iran. That appears to have eased fears that significant volumes of Iranian crude would suddenly disappear from the global market. Iran also continues to export oil to China despite existing U.S. sanctions.
The market is also dealing with softer demand expectations and rising U.S. inventories. Last week’s EIA report showed U.S. commercial crude inventories rising by 4.4 million barrels, compared with expectations for a 600,000-barrel draw. Gasoline demand also softened. In addition, both the IEA and OPEC have recently lowered their 2026 oil-demand forecasts, adding to a broader backdrop in which traders are weighing supply risks against signs of slower consumption.
From a technical perspective, the decline leaves WTI in a more neutral position heading into the next trading day.
The price is settling between the 200-hour moving average at $84.07 and the 100-hour moving average at $85.49. Falling back below the 100-hour moving average gives sellers a slight edge in the short term, but holding above the 200-hour moving average prevents them from taking firmer control.
A move below the 200-hour moving average at $84.07, followed by the 50% midpoint of the decline from the July high at $83.89, would strengthen the bearish bias. Below those levels, the next major downside target is near $81.61.
On the upside, buyers would need to push prices back above the 100-hour moving average at $85.49 to regain more control. That would bring the 61.8% retracement at $86.17 back into view.
Above $86.17, attention would shift to the 100-day moving average near $87.78. That level is especially important after last Thursday’s high stalled at $87.67. The $87.67 to $87.78 area therefore represents a key resistance zone if buyers can reestablish momentum.
For now, $84.07 on the downside and $85.49 on the upside remain the key technical boundaries. A break of either level should help determine the next directional move.
