West Texas Intermediate (WTI), the benchmark for US crude oil, began the week with notable gains, reversing part of Friday's pullback from its highest price since May 21. WTI is currently trading just above the mid-$98.00s, marking an increase of over 2% for the day, as ongoing geopolitical uncertainties in the Middle East continue to drive bullish sentiment in the oil market [1].
Recent developments include Iran-backed Houthi fighters in Yemen claiming responsibility for drone and missile attacks on a military base in southern Saudi Arabia. Additionally, a planned regional meeting between Gulf states and Iran regarding the security of the Strait of Hormuz has been postponed. These events have heightened concerns about potential supply disruptions in the region, reinforcing the near-term positive outlook for crude oil prices [1].
From a technical perspective, WTI maintains a bullish bias, trading well above the 100-day Simple Moving Average (SMA) at $85.38 and having surpassed the 61.8% Fibonacci retracement level at $95.48. The Moving Average Convergence Divergence (MACD) indicator remains in positive territory, and the Relative Strength Index (RSI) is near 69, indicating strong but potentially overextended upward momentum. Key resistance is identified at the 78.6% Fibonacci retracement at $103.23, with further resistance at the cycle high near $113.11. On the downside, support is seen at the reclaimed 61.8% retracement at $95.48, followed by the 50% retracement at $90.04 and the 100-day SMA at $85.38 [1].
No specific analyst forecasts or forward-looking statements are provided beyond the technical outlook and the impact of ongoing geopolitical risks [1].
CONCLUSION
WTI crude oil prices have surged over 2% amid escalating Middle East tensions and concerns about supply disruptions, maintaining a bullish technical outlook. The market remains sensitive to geopolitical developments, with key resistance and support levels closely watched by traders. No additional analyst commentary or forward-looking projections were provided in the source.