WTI Oil Tops $95 as Supply Risks Boost Bulls

WTI Rebounds After Pullback From $100

West Texas Intermediate (WTI) Crude Oil regained momentum during Tuesday’s Asian session. The benchmark recovered part of Monday’s decline after briefly approaching the $100.00 psychological level. As a result, WTI now trades slightly above the $95.00 mark, posting a gain of nearly 2% on the day.

Strait of Hormuz Disruptions Support Prices

Meanwhile, supply concerns continue to support crude prices. The Strait of Hormuz — a key shipping route that handles roughly 20% of global oil and liquefied natural gas flows — remains heavily disrupted following the US-Israeli war on Iran. Consequently, traders are increasingly worried about potential supply shortages.

Because of this disruption, energy markets remain sensitive to geopolitical headlines. Therefore, even modest signs of tightening supply can quickly lift crude prices.

Technical Structure Underscores Bullish Bias

From a technical perspective, the near-term outlook for WTI remains cautiously bullish. However, prices must stay above the $94.22 region to maintain this constructive structure. This area aligns with the 50% Fibonacci retracement of the decline from $112.83 to $75.61 and continues to act as a key pivot for buyers.

In addition, WTI remains well above the 200-hour Simple Moving Average (SMA), currently located near $88.33. This positioning reinforces the broader upward bias despite the recent retreat from the $98 area.

Momentum indicators also show early signs of improvement. For instance, the Moving Average Convergence Divergence (MACD) histogram is turning less negative. At the same time, the MACD line is moving closer to the signal line near the zero level. Together, these signals suggest a gradual recovery in bullish momentum.

The Relative Strength Index (RSI) provides a similar message. Currently, the indicator hovers around the 50 level, which typically reflects a market searching for stronger directional conviction after a period of consolidation.