WTI remains broadly firm around $90 as oil shipments through Hormuz remain restricted
- The Oil price turns sideways after reaching the $90.00 mark.
- Oil supply through the Strait of Hormuz remains limited.
- US President Trump said that renewed Middle East conflicts are unlikely to last “too long”.
West Texas Intermediate (WTI), futures on NYMEX, consolidates in a tight range around $88.85 during the European trading session on Thursday. The rally in oil prices has paused after reaching the $90 mark; however, the outlook seems positive as the oil supply through the Strait of Hormuz, a critical chokepoint to almost 20% of global energy supply, remains restricted amid ongoing Middle East conflicts.
According to data from Kpler, four commodity vessels transited the Strait of Hormuz on Tuesday, down from 10 on Monday and below the 10-day average of around 13.
The resumption of the exchange of attacks between the United States (US) and Iran near the chokepoint has limited the oil supply.
The US launched fresh airstrikes on Iranian military targets, aiming to neutralize them before planting mines around the strategic waterway this week, following almost a month of relative calm. In retaliation, Iran also attacked US bases in Jordan and warned of further military aggression.
Meanwhile, the comments from US President Donald Trump on Wednesday indicated that the renewed attacks between both nations won’t last “too long”.
WTI Technical Analysis
In the daily chart, WTI US Oil trades at $88.86. The contract holds a bullish near-term bias as it remains above the 20-period Exponential Moving Average (EMA) at $84.25, keeping the broader uptrend intact. The Relative Strength Index (14) at 61.69 stays in positive territory but below overbought levels, suggesting firm yet not overstretched bullish momentum as price consolidates near recent highs.
On the downside, initial support is seen at the 20-period EMA at $84.25, where buyers are likely to defend the current advance on any pullback. As long as WTI holds above this moving average, the technical structure favors further upside exploration, with dips toward the EMA likely to attract renewed demand rather than signal a trend reversal.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
