WTI Oil Prices Rebound to $89 as Supply Concerns Ease

West Texas Intermediate (WTI) crude oil prices edged higher during Tuesday's Asian session, reclaiming the $89.00 mark after a brief two-day decline. Despite this rebound, the commodity remains near a four-week low reached last Friday, reflecting mixed market sentiment.

Geopolitical tensions in the Middle East continue to provide some support to oil prices, as the risk of further escalation keeps a geopolitical risk premium in play. However, this upside is being tempered by resilient crude exports from the Middle East and a recent G7 emergency stockpile release, which has eased supply concerns.

From a technical standpoint, WTI prices have found acceptance below the 200-period Simple Moving Average (SMA) on the 4-hour chart. Further downside may be signaled if prices break below the 38.2% Fibonacci retracement of the July-September upswing. The Moving Average Convergence Divergence (MACD) indicator remains marginally negative, while the Relative Strength Index (RSI) around 46 suggests subdued momentum.

The 200-period SMA at $90.60 is identified as an immediate resistance level, with the 23.6% Fibonacci retracement at $93.62 acting as another hurdle. On the downside, immediate support is found at the 38.2% retracement at $88.52, with deeper support levels at $84.40 and $80.29.