WTI Price Forecast: Downside likely towards $67 on Hormuz reopening hopes

West Texas Intermediate (WTI) oil futures experienced a slight decline to near $74 on Thursday, edging closer to its three-week low of $73.51. The price is facing selling pressure as there is an increasing likelihood of the Strait of Hormuz reopening. This possibility is supported by statements from Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, who mentioned that Iran and Oman are close to finalizing a framework for managing navigation through the passage.

A senior Gulf official commented that there is a 50% chance of Iran and Oman reaching an agreement by Friday. Iran believes it can introduce a joint toll-type system near Hormuz, but global leaders have not yet shown signs of favoring Iran's authority in the passage. The US has condemned Iran’s intentions, contradicting President Donald Trump's previous claim that Iran has agreed to the complete and total opening of the Hormuz Strait.

Currently, WTI oil is trading below the 20-day exponential moving average at $79.24, indicating a bearish near-term bias. The relative strength index (RSI) is at 42, suggesting modest but not extreme selling pressure. The next key resistance level is the 20-day EMA at $79.24, which could cap any recovery attempts. If the price breaks below this level, it may extend the decline towards the five-month low of $67.09.