WTI Price Struggles to Hold Above $90 Amid US-Iran Tensions
The price of West Texas Intermediate (WTI) oil futures on NYMEX has struggled to hold above $90, despite ongoing tensions between the US and Iran. On Monday, WTI traded as low as $89.50 during the European trading session.
Iran's recent attack on three oil tankers that attempted to pass through the Strait of Hormuz has raised concerns over prolonged disruptions to Middle East energy flows. Strategists at ING note that the oil market remains 'well-supported' with little sign of a peace between the US and Iran, as geopolitical risks in the Persian Gulf intensify.
The OPEC+ group kept its oil output policy unchanged for October on Sunday, but is likely to pause further output increases in Q4 while reviewing 2027 quota baselines. Danske Bank warns that 'OPEC+'s ability to steer actual supply and prices remains limited as long as the Iran conflict continues to disrupt flows through the Strait of Hormuz.'
WTI's technical analysis suggests a bullish near-term bias, with the price holding well above its 20-day Exponential Moving Average (EMA) at $85.27.