WTI crude struggles near $89 as supply risks ease

West Texas Intermediate (WTI) crude oil prices showed a modest rebound on Tuesday, edging back above $89.00 after a brief dip. This move broke a two-day winning streak but kept prices near their lowest point in four weeks, which was reached last Friday. The price action reflects a tug-of-war between geopolitical risks and easing supply concerns.

Geopolitical tensions in the Middle East continue to underpin oil prices, as fears of escalation add a risk premium. However, this support is being countered by strong crude exports from the region and the G7's decision to release emergency stockpiles, which has alleviated some supply worries. These factors may limit significant upside potential for WTI.

From a technical standpoint, WTI prices appear to be stabilizing below the 200-period simple moving average (SMA) on the 4-hour chart. Further declines could be confirmed if prices drop below the 38.2% Fibonacci retracement of the July-September rally. The moving average convergence divergence (MACD) indicator remains slightly negative, while the relative strength index (RSI) at 46 suggests a consolidative phase rather than a strong recovery. The 200-period SMA at $90.60 and the 23.6% Fibonacci retracement at $93.62 are key resistance levels to watch.