Key Moments
- WTI futures on NYMEX trade nearly 3% higher, hovering just above $99.50 in the European session on Monday.
- A precautionary shutdown of a major Saudi pipeline and the delay of a Gulf shipping corridor meeting have lifted crude prices.
- WTI spot at $99.45 remains firmly above the 20-day EMA at $89.92, with RSI at 69.63 signaling a late-stage but intact bullish move.
Supply Disruptions Drive WTI Above $99
West Texas Intermediate (WTI) futures on the NYMEX extended their early gains during Monday’s European trading hours, rising close to 3% to trade slightly above $99.50.
Analysts at Deutsche Bank reported that crude prices advanced sharply after a major Saudi Arabian oil pipeline was shut down as a precaution late on Friday in response to recent attacks, and after the postponement of a planned meeting scheduled for today between Iran and Gulf nations to discuss establishing a temporary shipping corridor through the Strait of Hormuz.
Pipeline Attack and Regional Tensions
According to CNN, Saudi Arabia’s Ministry of Energy stated on its website Friday that the pipeline had been attacked and “was shut down as a precautionary measure.” The report noted that on Thursday, Iran-backed Houthis launched multiple drones in an effort to seize strategic locations along the Red Sea.
In parallel, the cancellation of the scheduled talks between Iran and Gulf states, which had been aimed at securing agreement on a provisional framework to manage shipping flows through the Strait of Hormuz, also contributed to the move higher in oil prices. Commenting on the meeting, Iran’s Foreign Ministry spokesperson said, “Saudi Arabia insisted for meeting between Tehran and Gulf powers in Oman not to take place.”
Deutsche Bank highlighted that these events have strengthened “market concerns around regional supply security and key shipping routes”.
WTI Technical Landscape
On the daily chart, WTI US Oil is quoted at $99.45, extending a robust upward phase with prices trading significantly above the 20-day exponential moving average (EMA) at $89.92. The fact that spot prices remain comfortably above this trend metric indicates that underlying buying interest is still solid. At the same time, the 14-day Relative Strength Index (RSI) stands at 69.63, hovering just below overbought territory and signaling that the advance may be moving into a more mature stage, even though bullish momentum persists.
On the downside, initial technical support is located at the 20-day EMA at $89.92. This level underpins the broader uptrend and would be closely monitored if prices experience any corrective pullback.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Key Technical Levels
| Metric | Level |
|---|---|
| WTI spot price | $99.45 |
| 20-day EMA | $89.92 |
| Relative Strength Index (14) | 69.63 |
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