West Texas Intermediate (WTI) Crude Oil prices regained positive momentum during the Asian session on Tuesday, recovering part of the previous day's retracement from near the $100.00 psychological mark. The commodity is currently trading just above the $95.00 level, marking a nearly 2% increase for the day [1].
A major factor driving this price recovery is the disruption of the Strait of Hormuz, a critical chokepoint for approximately 20% of the world’s oil and liquefied natural gas trade. The effective closure of this waterway, following the US-Israeli war on Iran, has heightened concerns about supply shortages and is providing a significant tailwind for crude oil prices [1].
From a technical standpoint, WTI maintains a mildly bullish bias as it holds above the $94.22 area, which corresponds to the 50% Fibonacci retracement level of the $112.83-$75.61 decline. The price also remains comfortably above the 200-hour Simple Moving Average (SMA) at $88.33, reinforcing the underlying upward trend despite the recent pullback from the $98 handle. The Moving Average Convergence Divergence (MACD) histogram has turned less negative, and the MACD line is edging above the signal line near zero, indicating recovering upside momentum. The Relative Strength Index (RSI) fluctuates around 50, suggesting the market is attempting to rebuild directional pressure after a period of consolidation [1].
Immediate resistance is noted at $95.80–$96.00, with recent intraday highs clustering in this range. The 61.8% retracement at $98.61 capped the latest advance, and a clear hourly close above this level could open the way toward the $104.87 Fibonacci barrier. Conversely, failure to overcome $96.00 would shift focus back to the $94.22 support, with deeper retracement possible toward the $92.50–$92.25 congestion zone and the 38.2% Fibonacci level at $89.83. The 200-period SMA near $88.33 acts as a more distant downside buffer [1].
CONCLUSION
WTI crude oil prices have rebounded above $95, driven by supply concerns stemming from disruptions in the Strait of Hormuz. Technical indicators point to a mildly bullish outlook, with resistance and support levels closely watched for further price action. The market remains sensitive to ongoing supply risks and technical developments.