West Texas Intermediate (WTI) crude oil prices declined sharply on Thursday, erasing all of the previous day's gains as traders reassessed supply risks following renewed military strikes between the United States and Iran. At the time of writing, WTI was trading around $71.75, marking a 3.77% drop on the day [1]. Earlier in the week, crude oil prices had surged due to concerns that the US-Iran conflict could disrupt shipping through the Strait of Hormuz, a key global oil transit route. However, market participants now view the latest escalation as unlikely to develop into a full-scale war, with expectations that shipping through the Strait of Hormuz will continue to recover [1].
From a technical standpoint, Thursday's decline was triggered by a rejection at the 200-day Simple Moving Average (SMA) near $73.35, which is acting as immediate resistance. WTI remains well below the 100-day SMA at approximately $86.91, indicating that sellers still have control despite some signs of improving momentum [1]. The Relative Strength Index (RSI) has rebounded from near-oversold levels to around 40.20 but remains below the neutral 50 mark, suggesting that bullish momentum is still limited. Meanwhile, the Moving Average Convergence Divergence (MACD) has turned positive, signaling early recovery attempts that are currently capped by key resistance levels [1].
Looking ahead, a break above the 200-day SMA at $73.35 could open the way for a move toward the $80.00 psychological resistance level, followed by the 100-day SMA near $86.91. On the downside, immediate support is seen at $67.00, and a break below this level could expose the $60.00 area [1]. No specific analyst opinions or forward-looking statements beyond technical analysis were provided in the article.
CONCLUSION
WTI crude oil experienced a notable decline of 3.77% after failing to break above the 200-day SMA, with market sentiment remaining cautious amid ongoing US-Iran tensions. Technical indicators suggest limited bullish momentum, and key resistance and support levels will be closely watched for future price direction.