WTI Holds Gains Near $89.50 Amid Geopolitical Risks
West Texas Intermediate (WTI) crude oil prices are holding modest gains near $89.50, marking the second day of upward movement. The rise follows a rebound from an over one-month low, though buying interest remains limited.
Geopolitical risks are supporting prices, particularly tensions between Iran-backed Houthis in Yemen and Saudi Arabia. Recent clashes have seen Saudi-backed forces claim strategic locations along the Red Sea coast, while the Houthis retaliated with attacks on Saudi targets, including an Aramco refinery in Riyadh. Additionally, Iran has escalated attacks on tankers in the Strait of Hormuz, threatening key energy infrastructure.
A developing storm in the Gulf of Mexico is also adding to concerns over US energy production and refining. Despite these risks, the lack of strong buying momentum suggests caution before predicting significant price gains. From a technical standpoint, WTI trades below its 200-period Simple Moving Average (SMA) on the 4-hour chart, capping near-term upside potential.
The Moving Average Convergence Divergence (MACD) has turned positive, while the Relative Strength Index (RSI) remains neutral-to-positive. Key resistance levels are identified at $90.66, $91.05, and $95.25, with support levels at $87.66, $84.27, $79.44, and $73.29.