West Texas Intermediate (WTI) – the benchmark US Crude Oil price – retreats from the vicinity of mid-$94.00s, or an over two-week high set during the Asian session on this Wednesday, snapping a four-day winning streak. The commodity, however, lacks follow-through selling and currently trades around the $93.75-$93.70 region, down less than 0.20% for the day.
Hope that the US-Russia diesel agreement could free up additional supplies and cap crude oil prices. Meanwhile, the downside remains cushioned amid escalating tensions between Saudi Arabia and Iran-backed Houthi rebels in Yemen. Furthermore, the US-Iran standoff over the Strait of Hormuz keeps the geopolitical risk premium in play and acts as a tailwind for the black liquid.
From a technical perspective, crude oil prices retain a bullish near-term tone, awaiting a sustained move beyond the 50% Fibonacci retracement level of the September-October slide before extending a one-week-old uptrend amid constructive momentum indicators. In fact, the Relative Strength Index (14) is hovering around 64, signaling firm but not yet overbought buying pressure.
Moreover, the Moving Average Convergence Divergence (MACD) indicator remains in positive territory with a modestly positive reading that hints at sustained upside bias. Hence, a move beyond the 50% retracement at $94.24 could extend further to the 61.8% level at $96.13 and the 78.6% retracement at $98.83 before oil prices aim to test the cycle high near $102.26.
On the downside, the first notable support is clustered around the 38.2% retracement at $92.35, ahead of secondary demand at the 23.6% level at $90.01, while the broader bullish structure would likely be questioned only on a deeper slide toward the $86.22 anchor.
WTI 4-hour chart
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