WTI Price Forecast: Slips below $92.00 amid Iran diplomacy hopes; bullish potential intact
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – extends the previous day's late pullback from the $95.80 area and drifts lower through the Asian session on Friday.
West Texas Intermediate (WTI) crude oil prices slipped below $92.00 amid hopes for improved Iran-U.S. diplomatic relations. The benchmark U.S. crude price, currently trading near $91.90, has dropped 2.0% on the day. This decline comes after a two-day winning streak, as supply concerns ease with the possibility of Iran reopening the Strait of Hormuz in exchange for Washington lifting its economic blockade of Iran.
However, a Houthi missile attack on Saudi Arabia maintains elevated geopolitical risks. From a technical standpoint, crude oil prices remain above the 200-period Simple Moving Average (SMA) and the 38.2% Fibonacci retracement level of the July-September rally. The Moving Average Convergence Divergence (MACD) indicator turns positive, indicating improving bullish momentum.
Traders should watch the 200-period SMA near $88.99 and the 38.2% Fibonacci retracement at $88.59 for support. Any further decline may find support at the 50.0% Fibonacci level at $84.47 and continue lower toward $80.35, $74.48, and $67.01. On the upside, resistance initially lies at the 23.6% Fibonacci level at $93.68, with further gains possible if the price breaks above this level.
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