What Happened
West Texas Intermediate (WTI) crude oil edged up to $95.70 per barrel during early Asian trade on Tuesday, gaining ground from the prior session’s close near $95.50. The move higher โ a rise of roughly 0.2% โ came as fresh geopolitical tensions between the US and Iran renewed concerns about potential supply disruptions through the Strait of Hormuz, a narrow waterway through which roughly 20% of the world’s oil supply passes.
Key Levels
- Support 1: $95.00 โ round-number floor that capped recent pullbacks
- Support 2: $93.50 โ previous consolidation zone and short-term demand area
- Resistance 1: $96.50 โ near-term ceiling from last week’s intraday highs
- Resistance 2: $98.00 โ psychological level and multi-month high zone
Technical Picture
WTI remains in a short-term uptrend, trading comfortably above its 20-day moving average near $92.80. Price action is forming a series of higher lows, a constructive sign for bulls. The Relative Strength Index (RSI โ a momentum indicator that signals overbought above 70 or oversold below 30) is tracking near 62, leaving room to push higher before reaching overbought territory.
What Traders Are Watching
The key trigger level to the upside is a clean break and daily close above $96.50, which could open the door toward $98.00 and potentially the psychologically significant $100.00 level. On the downside, a slip below $95.00 would signal the geopolitical premium is fading and could expose the $93.50 support. Traders should also monitor any official statements from Washington or Tehran, as de-escalation rhetoric could quickly unwind the risk premium currently baked into prices.
Bias
Bullish โ Geopolitical risk remains the dominant driver, and with price holding above key support and momentum still pointing higher, the path of least resistance is to the upside in the near term.