On Thursday West Texas Intermediate (WTI) crude paused its slide, trading near yesterday's low. The US benchmark is holding just above $87.50.

On Wednesday, Democratic leaders signalled their intent to end the "Iran war" after a decisive midterm victory that gave them control of both chambers of Congress. Senate Democratic leader Chuck Schumer hinted the party could use control over public financing to achieve that goal.

As a result, market participants began pricing out part of the geopolitical premium, putting downward pressure on crude prices.

At the same time, the situation in the Strait of Hormuz remains a material risk for energy markets: any disruption to shipping could curb global supplies. Iran has already indicated that US responses to its conditions for resuming transit through this strategic waterway have been unsatisfactory. Worries intensified after an attack on another oil tanker off the coast of Oman near the Strait of Hormuz, underscoring concerns about maritime security in the region.

On the other side of the coin, a persistent dollar sell-off could act as a tailwind for dollar-priced commodities.

Therefore, before opening new short positions in the commodity, it is prudent to wait for confirmation of a sustained move below the current low.

Technically, crude prices retain a constructive bias, trading above the confluence of the 100- and 200-day simple moving averages (SMA) around $85.90. That support confluence points to underlying demand on pullbacks following the recent move down from the multi-month peak.

A decisive break below this confluence would open the door to deeper losses.

Immediate resistance sits at the convergence of the 50-day EMA and SMA near $93.40. Oscillators are mixed: the MACD shows fading negative momentum, but the RSI has moved into negative territory, signalling weakness in bulls' ability to push prices higher.