WTI Price Forecast: Retakes $99.00 as bulls eye further gains amid Middle East jitters

West Texas Intermediate (WTI) crude oil prices have surged back above the $99.00 mark following a volatile day, as geopolitical tensions in the Middle East continue to fuel demand. The benchmark US Crude Oil price has reached its highest level since May 21 and appears set for further gains amid growing concerns over supply from the region.

Iran-backed Houthis launched a missile and drone attack on a Saudi air base in Khamis Mushait on Monday, while Iran's Supreme National Security Council Secretary Mohsen Rezaei has ruled out immediate negotiations with the US. These developments have dampened hopes for a diplomatic resolution to the conflict, maintaining a premium on geopolitical risk and bolstering the outlook for crude oil prices.

From a technical standpoint, the recent breakout above the $91.00 horizontal barrier - a key 61.8% Fibonacci retracement level from the May-July price decline - has encouraged bullish traders. Momentum remains positive, with the Relative Strength Index (RSI) hovering near the overbought level of 69 and the Moving Average Convergence Divergence (MACD) staying positive, indicating persistent upward pressure on WTI prices.

The next major resistance level is the prior cycle high near $107.23, while support can be found at the 78.6% retracement at $98.57, followed by the 61.8% level around $91.78 and the 50% retracement near $87.01. Should the price break below these levels, it could encounter further support at the 100-day Simple Moving Average (SMA) around $85.39, and then test additional Fibonacci support levels at $82.24 and $76.33, before potentially reaching the cycle low of $66.79.