West Texas Intermediate (WTI), the US crude oil benchmark, traded around $90.05 during early European hours on Friday, following a decline as traders booked profits. Despite this pullback, the overall bullish technical structure remains intact, with WTI holding above the 100-day simple moving average and the Bollinger middle band, indicating continued upside momentum, though the Relative Strength Index (14) at 69.5 suggests the market is approaching overbought territory and may be at risk of fatigue if buying persists without consolidation [1].
Geopolitical tensions have been a significant driver of recent price action. The US Central Command (CENTCOM) reported conducting a 13th consecutive night of strikes on Iran, targeting drone facilities and coastal surveillance sites. Iranian state media confirmed explosions along the Strait of Hormuz and other strategic locations. Additionally, Yemen’s Iran-backed Houthi rebels attacked oil tankers in the Red Sea, threatening a key export route used by Saudi Arabia to bypass the Strait of Hormuz. US President Donald Trump stated that the US would hold Iran responsible for the Houthis’ actions and warned of a forthcoming "major military punishment" for both Iran and its Houthi allies [1].
Rabobank’s energy strategists noted that escalating US-Iran tensions, combined with intensifying strikes between Ukraine and Russia, have driven rallies across crude oil, refined products, natural gas, and European power markets over the past week. They highlighted that the current risk premium in near-dated contracts may not be fully reflected further out along the curve, despite their medium-term view of gradually easing Brent and WTI prices [1].
From a technical perspective, immediate resistance for WTI is seen at the Bollinger upper band around $91.25, with further hurdles at the May 26 high of $93.57 and the June 3 high of $94.87. On the downside, support is located at the $90.00 psychological level, followed by the 100-day SMA at $88.30, and deeper levels at the Bollinger middle band near $76.75 and the lower band around $62.27 if a more pronounced correction occurs [1].
CONCLUSION
WTI prices have retreated to near $90.00 amid profit-taking, but the underlying bullish structure persists due to heightened geopolitical risks. Market participants remain focused on developments in the Middle East and Ukraine, which continue to inject volatility and a risk premium into energy markets.