West Texas Intermediate (WTI), the benchmark US crude oil price, experienced modest losses during the Asian session on Tuesday, trading around $91.75 and marking a decline of over 0.70% for the day. This pullback snapped a three-day winning streak that had taken prices to a two-week high the previous day [1]. Despite the decline, the downside appears limited due to escalating geopolitical tensions in the Middle East. The Iran-backed Houthi group in Yemen intensified its campaign against Saudi Arabia, launching additional missiles on Monday following deadly strikes on Riyadh’s King Khalid International Airport over the weekend. Saudi Arabia has vowed retaliation, and US President Donald Trump has raised the possibility of joining strikes on the Houthi group and resuming attacks on Iran [1].
Further contributing to the geopolitical risk premium, Ukrainian President Volodymyr Zelenskyy accused Russia of violating an 'energy ceasefire' announced by US President Donald Trump. These developments are seen as supportive factors for crude oil prices, suggesting that bearish traders should exercise caution before concluding that the recent rebound from an over one-month low has ended [1].
From a technical standpoint, WTI remains comfortably above the 200-day Simple Moving Average (SMA) at $82.75, maintaining a constructive bullish bias despite the latest pullback. The price is also just above the 38.2% Fibonacci retracement at $91.27, indicating an initial demand zone in the current area. Momentum indicators present a mixed picture: the MACD is slightly below zero, hinting at fading upside momentum, while the RSI near 52 suggests a neutral-to-positive tone, with bullish pressure persisting but not overstretched [1].
Key technical levels to watch include support at $87.85 and $84.43, with deeper floors at $79.57 and $73.37. On the upside, a break above the 23.6% Fibonacci retracement at $95.49 could open the path toward the cycle high near $102.33, though gains are likely to be capped unless momentum improves significantly [1].
CONCLUSION
WTI crude oil prices have pulled back below $92 amid renewed Middle East tensions and ongoing geopolitical risks, but the overall bullish bias remains intact. Technical indicators suggest that while upside momentum is fading, key support levels are holding, and further gains are possible if momentum strengthens. Market participants are advised to monitor geopolitical developments and technical levels closely.