WTI Tumbles to 11-Week Low as Iran Peace Talk Momentum Accelerates

Crude oil fell below $85 per barrel on Tuesday, extending losses from the previous session and reaching its lowest level since late August as diplomatic efforts to resolve the US-Iran conflict gathered pace. As of early Wednesday, crude was trading at $86.48 per barrel, with Brent crude at $92.09 per barrel. The chart confirms the severity of the selloff: WTI spot has collapsed from a peak near $104 in late October to test support at the $85.27 horizontal that runs across the entire period shown. US President Donald Trump said further strikes on Iran wouldn't be necessary, while Democrats are weighing whether to use a looming government shutdown deadline to push Trump to find an off-ramp.

Oil prices reversed sharply in November, as de-escalation hopes grew and exports from the region continued to recover, with traffic through the Strait of Hormuz increasing and bringing Middle Eastern oil shipments close to pre-war levels. The American Petroleum Institute estimated that crude oil inventories in the United States rose by 9.0 million barrels in the week ending November 6, adding to bearish sentiment. US crude oil production in the week ending October 30 rose to a new record high of 14.003 million barrels per day. Yet tensions remain elevated as US forces reportedly launched another strike on Iran's Qeshm Island, while tanker vessels remained targets of attacks in the Strait of Hormuz.

What the calendar says

The OPEC Monthly Oil Market Report is due on November 11, delivering the cartel's assessment of supply and demand fundamentals at a moment when the market is pricing in an end to Middle East supply risks. The IEA Oil Market Report follows on November 13, alongside October Producer Price Index data and Baker Hughes U.S. total rig count. Those weekly EIA inventory figures will be critical: investors are awaiting monthly oil market reports from the US EIA, OPEC and IEA for further insights into global supply and demand. The economic calendar shows no other scheduled releases with direct bearing on crude this week.

Technical picture

The chart shows that the price action has been relentlessly lower since breaking the $103 zone in early November. The drop accelerated past the $95 mid-point and then sliced through the red support line at $85.27, which had held repeatedly from late October onwards. The candles are now clustering between $84 and $86, with the spike low reaching $83.89 on the most recent session. Every attempt to rally has been sold, suggesting momentum remains bearish. Immediate resistance lies at $88 and then $91, while a sustained close below $85 would expose the next downside targets near $83 and potentially $80 if de-escalation talk continues to remove the geopolitical premium. Traders watching for signs of stabilisation will want to see price reclaim $88 and hold above it for more than a few hours.