WTI holds weekly gains near $96 amid risk premium to oil prices
West Texas Intermediate (WTI), futures on NYMEX, holds onto weekly gains near $96.00 during the European trading session on Friday. The oil price has gained significantly this week, as financial markets continue to offer risk premium due to prolonged Middle East conflicts.
West Texas Intermediate (WTI) oil futures maintained gains near $96.00 during European trading on Friday, buoyed by market concerns over prolonged tensions in the Middle East. Analysts at Commerzbank noted the persistence of shipping activity through the Strait of Hormuz, with over 40 vessels transiting in the last 24 hours and oil flow reaching 12 million barrels per day, despite security concerns.
ING strategists suggested that if this flow remains strong, the market may begin to recoup some of the risk premium. However, Iran's military restrictions on ships passing through the Hormuz strait continue to fuel supply fears. The International Energy Agency (IEA) recently agreed to release the remaining 100 million barrels from strategic reserves, as reported by ING.
WTI crude oil, traded on NYMEX, closed at $96.11, showing a bullish near-term trend as it surpassed the 20-day Exponential Moving Average of $92.29. Momentum indicators suggest the trend remains robust, with the Relative Strength Index (14) at 60, indicating strong upward momentum. Immediate support is anticipated at the 20-day EMA, which, if breached, could signal a shift in the uptrend.
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