WTI Oil Price Forecast: Bulls lose momentum near $100
West Texas Intermediate (WTI) Oil extends its decline on Thursday, sliding nearly 2% as Saudi Arabia’s rerouting efforts and hopes for a faster pipeline recovery weigh on prices, even as broader Middle East supply risks stay elevated.
West Texas Intermediate (WTI) oil prices slid nearly 2% on Thursday, reaching $95.50, its lowest level since May 21. This decline was attributed to Saudi Arabia's efforts to reroute oil shipments and restore pipeline capacity following recent disruptions. According to Commerzbank analysts, Saudi Arabia has started using alternative export routes, including ship-to-ship transfers at Sohar, to bypass the Red Sea route affected by drone attacks.
The kingdom is also reportedly working to restore about half of the capacity of its East-West pipeline within days. WTI oil is currently trading below its 50-period Simple Moving Average (SMA) at $96, but remains above its 100-period SMA at $91 and the 200-period SMA at $86. The Relative Strength Index (RSI) stands at 40, indicating a slight oversold condition, while the Moving Average Convergence Divergence (MACD) indicator remains below zero.
On the downside, support is seen at the $95 level, with deeper pullbacks exposing the $80 floor. On the upside, the 50-period SMA at $96 acts as initial resistance, with a potential recovery only occurring if prices surpass the psychological barrier at $100.
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