Crude Oil Sits on a Make or Break Level as Iran Talks Stall: Will Buyers Defend 85?

Crude oil futures have rotated lower from the 105 area (Daily level 2) to the 85 area (Daily level 3), which is confluent with yearly VWAP, after a sharp sell-off following the US midterm elections. Recovering Middle East supply and a US inventory build are weighing on prices, while the US blockade of Iranian oil shipments, stalled diplomacy and attacks on Gulf shipping keep risk elevated. Watch how buyers and sellers respond at the 85 area to see whether the market rotates back toward the middle of the range or extends lower over the next few weeks to a month.Satellite view of the Middle East and the Strait of Hormuz with Iran highlighted_ Image by FoxPictures via Shutterstock_