WTI clings to gains near mid-$99.00s, eyes multi-month top amid supply concerns

West Texas Intermediate (WTI) crude oil prices are holding steady near the mid-$99.00 range, edging closer to a multi-month high amid supply concerns. The benchmark US crude oil price is currently trading around $99.30-$99.35, up approximately 1.30% for the day. The recent conflict between Houthis and Saudi Arabia has heightened fears of supply disruptions in the Middle East, further bolstering crude oil prices.

Saudi Arabia has temporarily shut down the East-West oil pipeline after drone attacks from Iraq near the Iranian border, and Iran-backed Houthi forces have launched a significant attack on a Saudi air base in Khamis Mushait. Additionally, the US-Iran standoff over the Strait of Hormuz adds to the geopolitical risk premium supporting crude oil prices.

Traders are waiting for the key Federal Open Market Committee (FOMC) decision on Wednesday, which will influence the US Dollar and US Dollar-denominated commodities, including WTI. Technical analysis suggests a bullish path for the commodity, with WTI trading above the 100-day Simple Moving Average ($85.39) and reclaiming the 78.6% Fibonacci retracement level ($98.57).

Support levels are present at the 78.6% Fibonacci retracement ($98.57) and the 61.8% retracement ($91.78), with further support at the 50.0% retracement ($87.01) and key Fibonacci levels ($82.24 and $76.33).