West Texas Intermediate (WTI) Oil prices declined nearly 2% on Thursday, trading around $95.50 after reaching a high of $102.11 earlier in the week, which marked the highest level since May 21 [1]. The pullback comes as Saudi Arabia implemented measures to mitigate recent supply disruptions, including rerouting exports and advancing repairs on a key pipeline. According to Commerzbank analysts, Saudi Arabia has begun offering additional crude via Oman, utilizing ship-to-ship transfers at Sohar to bypass disruptions to its Red Sea export route. The kingdom is reportedly aiming to restore about half of the East-West pipeline's capacity within days following last week's drone attacks, which has helped reassure markets regarding near-term export continuity [1].
Technical analysis indicates that WTI maintains a bearish near-term tone, with prices slipping below the 50-period Simple Moving Average (SMA) at $96, while remaining above the 100-period SMA at $91 and the 200-period SMA at $86. The Relative Strength Index (RSI) at 40 is just above oversold territory, and the MACD indicator remains negative, suggesting persistent downside momentum, though not yet at extreme levels [1]. Immediate support is identified at $95, with further support at $91 and $86, while resistance is seen at $96 and the psychological $100 level [1].
On the daily chart, the recent rally stalled as buyers failed to sustain gains above $100. Despite the pullback, WTI remains well above the 50-day, 100-day, and 200-day SMAs, indicating a broadly bullish bias. The daily RSI near 59 and a positive MACD histogram suggest that bullish momentum persists without reaching overbought conditions. Key support levels are noted at $95, $90, and a broader demand zone between $85.26 and $84.95, with medium-term support at $79.71 and $70 [1].
Market sentiment appears cautious as technical indicators point to ongoing downside pressure, but the broader trend remains bullish as long as prices hold above major moving averages. The market is closely watching Saudi Arabia's efforts to restore pipeline capacity and reroute exports, which are seen as pivotal for near-term price stability [1].
CONCLUSION
WTI Oil prices have retreated from recent highs as Saudi Arabia's export rerouting and pipeline repair efforts ease immediate supply concerns. While technical signals indicate short-term bearish momentum, the broader trend remains bullish above key support levels. Market participants are monitoring Saudi actions for further direction.