WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. Trump administration to sanction firms tied to Iranian arms embargo, Tehran says US faces defeat. Coronavirus resurgence poses serious challenges to Europe and some parts of Asia. Hopes of further stimulus, China’s optimism favor energy bulls. WTI recovers the early-Asian losses while trading near $41.20 during the pre-Tokyo Asian trading on Monday. In doing so, the energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Fears of supply glut battle hopes of geopolitical challenges… With the rising cases in the UK and Spain, virus woes are retaking controls, which in turn weigh on the energy prices. Recently, comments from British Chief Health Officer, cited by Reuters, up for publishing on 10:00 GMT, suggested a very challenging winter ahead. Conditions in Spain, India and Brazil are also worsening with the daily jump in new cases and a lack of a cure to the pandemic. Elsewhere, the restart of oil rigs in the Gulf of Mexico and internal tension amid the Organization of the Petroleum Exporting Countries (OPEC), concerning the output cut accord, also weigh on the WTI prices. Alternatively, the US and Iran are again at loggerheads as America prepares to sanction over 20 firms tied to Tehran’s building of arms. During the weekend, Iranian President Hassan Rouhani said, per Reuters, “The United States faces defeat in its move to reimpose U.N. sanctions on Tehran.” It should also be noted that the market’s risk-off tone, as portrayed by 0.10% loss by S&P 500 Futures also weighs on the energy prices. Looking forward, oil traders may continue watching over the geopolitical headlines and the US dollar moves, amid a light calendar, for near-term direction. Technical analysis Friday’s Doji below 50-day SMA highlights $41.30 as the key short-term resistance ahead of July month’s high of $42.52. Meanwhile, the 21-day SMA level of $40.60 and the $40.00 can offer nearby strong supports to the WTI quote. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD Price Analysis: Struggles to keep the bounce off 21-day SMA FX Street 2 years WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. Trump administration to sanction firms tied to Iranian arms embargo, Tehran says US faces defeat. Coronavirus resurgence poses serious challenges to Europe and some parts of Asia. Hopes of further stimulus, China’s optimism favor energy bulls. WTI recovers the early-Asian losses while trading near $41.20 during the pre-Tokyo Asian trading on Monday. In doing so, the energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Fears of supply glut battle hopes of geopolitical challenges…… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.