West Texas Intermediate (WTI) crude oil futures on NYMEX are consolidating in a tight range around $88.85 during the European trading session on Thursday, after a recent rally that saw prices touch the $90 mark. The positive outlook for oil prices is underpinned by ongoing restrictions on oil shipments through the Strait of Hormuz, a critical chokepoint responsible for nearly 20% of global energy supply, as Middle East conflicts persist [1].
According to Kpler data, only four commodity vessels transited the Strait of Hormuz on Tuesday, a significant drop from 10 on Monday and well below the 10-day average of approximately 13 vessels. This reduction in shipments is attributed to renewed military tensions in the region, with the United States launching fresh airstrikes on Iranian military targets to prevent mine-laying activities around the strategic waterway. In response, Iran attacked US bases in Jordan and issued warnings of further military aggression [1].
US President Donald Trump commented on Wednesday that the renewed hostilities between the US and Iran are unlikely to last 'too long,' suggesting a potential for de-escalation in the near future [1].
From a technical perspective, WTI is trading at $88.86, maintaining a bullish near-term bias as it remains above the 20-period Exponential Moving Average (EMA) at $84.25. The Relative Strength Index (14) stands at 61.69, indicating firm but not overbought bullish momentum. Initial support is seen at the 20-period EMA, with dips toward this level expected to attract renewed buying interest rather than signal a trend reversal [1].
CONCLUSION
WTI oil prices remain supported near $90 as restricted shipments through the Strait of Hormuz and renewed US-Iran tensions limit supply. Technical indicators suggest a bullish outlook, with any pullbacks likely to attract buyers. The market is closely watching geopolitical developments for further direction.