WTI holds steady near $92.00 as US weighs sending more troops to Middle East

West Texas Intermediate (WTI) crude oil prices settled near $91.75 early Friday as the United States contemplated deploying an additional aircraft carrier strike group and 10,000 troops to the Middle East. Initial market reactions indicated a pause after a two-day increase, as traders weighed the situation alongside low global inventories and the potential for further escalation.

The Pentagon reportedly considered sending a third aircraft-carrier strike group to the Persian Gulf, with 10,000 sailors and Marines joining the deployment. The White House signaled a willingness to engage in increased military strikes against Iran following the November midterm elections. WTI's trading session exhibited volatility as market participants grappled with the prospect of a further price spike stemming from inventory constraints.

Analysts cautioned that Iran might retaliate against US assets and energy infrastructure in response to the military buildup. Meanwhile, the US Treasury Secretary urged European allies to release diesel from emergency stockpiles to counter potential export restrictions, while Societe Generale's Kit Juckes highlighted the complexities of the refined products market, cautioning that export bans could lead to diesel accumulation in storage rather than price reductions.

Technical analysis suggested a constructive near-term outlook for WTI, with the price trading above the 100-day moving average and supported by the lower Bollinger Band. Resistance levels were identified at $93.70 and $100.80, while support was found near $91.80 and $86.65.