WTI Oil Prices Pull Back from Overbought Levels Amid Geopolitical Tensions

WTI oil prices have retreated after reaching overbought levels, with the US benchmark trading at around $96.50 as of writing. This represents a decline of roughly 4% on the day. Despite the pullback, WTI is still poised for its second consecutive weekly gain due to ongoing supply concerns and geopolitical tensions in the Middle East.

The war in the region has severely restricted traffic through the Strait of Hormuz, with only seven vessels crossing the waterway on Thursday, down from 11 on Wednesday. This has contributed to elevated prices.

Technically, WTI remains bullish, as it holds above key moving averages and momentum indicators remain positive. Initial resistance lies at $100.00, followed by $105.00, while support is seen in the $90.00-$92.00 region.