WTI moves away from a three-week high touched, though the bias seems tilted in favor of bulls.
Geopolitical tensions in the Middle East could tighten access to global supplies and lend support.
Dovish Fed expectations continue to undermine the USD and should contribute to limiting losses.
West Texas Intermediate (WTI) US crude Oil prices tick lower during the Asian session on Tuesday and for now, seem to have snapped a four-day winning streak to a three-week top, around the $78.75-$78.80 area touched the previous day. The commodity currently trades just below the $78.00 mark, down nearly 0.50% for the day, though any meaningful downside seems elusive in the wake of rising Middle East tensions.
Israeli forces continued their operations near the southern Gaza city of Khan Younis on Monday and are preparing for some sort of retaliatory attacks by Iran, and its allies, amid the risk of a broader conflict in the Middle East. Moreover, the subsequent Israeli response could lead to a full-blown war in the key Oil producing region and disrupt global crude supplies. This, in turn, should continue to act as a tailwind for the black liquid and help limit losses.
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