- WTI price returns to the red, as diplomacy talks ease war risks.
- Bulls, however, remain hopeful while above the 21-DMA critical support.
- Geopolitics will continue to drive the oil price action in the coming sessions.
WTI (NYMEX futures) has reversed most of Thursday’s uptick, now posting moderate losses to pressurize daily lows near the $89.00 region.
The bears are back in the game amid easing fears of an imminent Russian invasion of Ukraine, as diplomacy calls in for de-escalation, especially with US Secretary of State Antony Blinken having accepted an invitation to meet Russian Foreign Minister Sergey Lavrov late next week, per the official source.
Meanwhile, investors also weigh in an unexpected build-up in the weekly US crude stocks data, published by the Energy Information Administration (EIA) on Wednesday. US crude inventories rose by 1.1 million barrels for the week ended Feb. 11 vs. expectations of a decline of 200,000 barrels, according to an S&P Global Platts poll.
Looking ahead, the geopolitical updates concerning the Ukrainian border will continue to lead the sentiment, impacting the oil price action. Meanwhile, end of the week repositioning could also affect the black gold.
Technically, nothing seems to have changed for WTI, as bulls continue to stay hopeful while the upward-sloping 21-Daily Moving Average (SMA) at $88.38 is defended.
The 14-day Relative Strength Index (RSI), however, turns lower towards the central line, suggesting that a retest of the 21-DMA support remains on the cards.
If the 21-DMA is breached convincingly, then a sharp drop towards the previous week’s low of $87.46 will be in the offing.
On the other side, a rebound in WTI could retest the $90.00 threshold, above which doors will open up towards Thursday’s high of $91.38.
WTI: Daily chart
WTI: Additional levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD holds above 1.0450 after sentiment data
EUR/USD struggles to gain traction but holds steady above 1.0450 in the European session on Tuesday. ZEW Survey - Economic Sentiment for Germany and the Eurozone improved in February, helping the Euro limit its losses.

GBP/USD holds above1.2600 after UK labor market data
GBP/USD struggles to attract buyers but holds above 1.2600 in the European session on Tuesday. The data from the UK showed that the ILO Unemployment Change remained unchanged at 4.4% in the three months to December, coming in better than the market expectation of 4.5%.

Gold in second day of gains with US and Russian officials meeting for peace talks
Gold sets forth rally and pops above $2,900 at the start of the European trading session on Tuesday. Markets brace for headlines to come in from Saudi Arabia where US and Russian officials are meeting. A daily close above $2,910 could put Gold on track for a new all-time high this week.

Storj bulls aiming for double-digit gains
Storj, an open-source platform that leverages the blockchain to provide end-to-end encrypted cloud storage services, continues to trade higher by 4.4%, around $0.39 on Tuesday after rallying 5% the previous day.

Rates down under
Today all Australian eyes were on the Reserve Bank of Australia, and rates were cut as expected. RBA Michele Bullock said higher interest rates had been working as expected, slowing economic activity and curbing inflation, but warned that Tuesday’s first rate cut since 2020 was not the start of a series of reductions.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.