Current Trend
WTI Crude Oil continues to trade within a broad consolidation range between 84.00 and 106.25 as the market reacts to ongoing geopolitical developments in the Middle East.
Over the past week, oil prices came under pressure as traders grew more optimistic about a possible easing of tensions between the United States and Iran. However, recent statements from both sides have painted a mixed picture, keeping uncertainty elevated. US President Donald Trump recently said negotiations were moving in a positive direction and mentioned progress regarding the Strait of Hormuz, although he also cautioned that a final agreement would not happen quickly. At the same time, Secretary of State Marco Rubio warned that military action remains an option if diplomatic efforts fail. Iranian officials, meanwhile, continue to insist that control of the Strait of Hormuz will remain under Tehran’s authority, a position that remains unacceptable to Washington.
As a result, despite temporary signs of optimism, the risk of further escalation in the region remains significant. Oil prices rebounded strongly today, recovering part of last week’s losses and climbing back toward the 92.00 area after reports of renewed US strikes targeting Iranian coastal infrastructure. Concerns over global supply disruptions are also supporting the market, particularly as any interruption around the Strait of Hormuz directly impacts one of the world’s most critical energy transport routes.
According to recent estimates from UBS Group AG, global oil inventories used to stabilize the energy market declined by approximately 246 million barrels during March and April. Analysts estimate total supply losses could approach 1 billion barrels by the end of May, reinforcing expectations for higher crude prices over the medium term.
Support and Resistance
WTI is attempting to stabilize after a week of selling pressure. A confirmed move above 93.75 could open the door for further upside toward 100.00, followed by 106.25 and potentially 112.50. On the downside, failure to hold the 87.50–84.00 support zone may expose the market to a deeper correction toward 75.00.
Technical indicators continue to reflect a mixed outlook, highlighting the uncertainty currently dominating the market. Bollinger Bands on the daily chart have flattened, suggesting a lack of clear directional momentum. The MACD is approaching negative territory, while Stochastic indicators are turning higher from oversold conditions, signaling the possibility of a short-term recovery. On the weekly timeframe, Bollinger Bands remain positively aligned, supporting the broader bullish structure and keeping the medium-term upside scenario intact.
Resistance levels: 93.75, 100.00, 106.25, 112.50
Support levels: 84.00, 75.00
Disclaimer
Educational example only. Signals are not financial advice; trade at your own risk.