WTI declines to near $89.00 despite US-Iran tensions
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $89.10 during the early European trading hours on Wednesday. WTI declines as traders take some profits. However, the potential downside of black gold might be limited amid ongoing tensions in the Middle East.
West Texas Intermediate (WTI) crude oil price fell to near $89.10 early Wednesday, as traders took profits. However, the potential downside may be limited due to ongoing tensions between the US and Iran. Iran's Islamic Revolutionary Guard Corps (IRGC) claimed to have launched a "heavy" ballistic missile attack on US bases in Jordan, in response to previous US strikes that caused civilian casualties.
The US military reported completing strikes on Iranian targets after alleged attacks by Iran on commercial shipping and American service members. US President Donald Trump warned of further attacks if Iran retaliated. Escalating tensions in the Middle East could raise concerns over oil supply disruptions and boost WTI prices. US crude oil inventories decreased more than expected, with a drop of 2.6 million barrels in the week ending August 28, compared to a previous week's rise of 4.2 million barrels.
Traders are awaiting the US Energy Information Administration's report, which is released later Wednesday. A larger-than-expected inventory draw indicates stronger demand and could lift WTI prices, while a bigger build suggests weaker demand or excess supply, potentially undermining prices. Technical analysis shows WTI US Oil is above the 100-day moving average and Bollinger middle band, suggesting a bullish bias.
Immediate resistance is at the upper Bollinger band near $89.55, while support is at the 100-day MA around $85.10.
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