WTI Crude Oil Hits Resistance as Geopolitical Tensions Simmer
The price of WTI crude oil has surged in recent weeks due to increased geopolitical and physical supply risks across the Middle East.
The latest leg higher was triggered by attacks on Saudi energy infrastructure, including the shutdown of the kingdom's East-West pipeline, a crucial alternative export route if flows through the Strait of Hormuz are disrupted.
As a result, WTI has risen from around $80 in August to nearly $103 per barrel, but it is now facing significant technical resistance.
If prices break above $103-$105, it could indicate that the market is pricing in something more serious than just a geopolitical risk premium. This would open up the possibility of further gains towards $108-$112 and potentially even higher highs around $116-$120 if physical supply disruptions worsen.