WTI Price Forecast: Downside bias persists while below 100-SMA hurdle near $86.80
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts some dip-buyers on Thursday, climbing back above the $86.00 mark during the first half of the European session.
WTI, or West Texas Intermediate, is the benchmark price for US Crude Oil and currently stands near $86.80. Despite buying pressure, the price lacks follow-through and remains below the previous day's high. The ongoing Middle East crisis, including strikes by US forces on Iran's Qeshm Island and Iranian attacks on ships near Didamar, contributes to geopolitical risk.
Iranian officials claim that the Strait of Hormuz is closed, adding to market tension. The lack of a supply glut and rising US crude inventories further dampen bullish sentiment. Technical analysis shows a bearish trend as WTI is trading below the 100-day SMA at $86.81, while momentum indicators indicate a soft bias. The 50% Fibonacci retracement level at $85.61 provides support, with deeper support at $81.26 and $75.06.
Resistance lies at the 100-day SMA and the 38.2% retracement at $89.96. A break above these levels could ease the bearish bias, potentially pushing prices toward the 23.6% retracement at $95.34. Factors such as global growth, political instability, OPEC decisions, US Dollar value, and Oil inventories all influence WTI price. The EIA's weekly inventory report, published every Tuesday, impacts price, with lower inventories typically signaling increased demand and higher prices.
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