WTI Prices Rebound from Three-Week Low, but Momentum Lacking

West Texas Intermediate (WTI) crude oil prices have staged a modest recovery from an over three-week low, but the momentum is still lacking. The price of WTI edged higher on Wednesday to around $88.80, up just over 0.80% for the day, as traders await further developments surrounding the Middle East crisis.

The US-Iran standoff continues to support the commodity, although easing supply concerns are capping gains. Hopes for a diplomatic solution to end the conflict have faded after US President Donald Trump turned down a seven-day ceasefire proposal from Iran.

From a technical perspective, the overnight breakdown below the 200-period Exponential Moving Average (EMA) on the 4-hour chart was seen as a key trigger for bearish traders. The subsequent slide found support near the 61.8% Fibonacci retracement level of the August-September upswing.