WTI extended losses on Tuesday after dropping 9% in the prior session as tensions between the US and Iran eased, chipping away at the geopolitical premium tied to the Strait of Hormuz. The contract was trading around $77.90, down nearly 4% on the day. Oman has also put forward a proposal to Iran for joint management of the chokepoint using “voluntary fees”, adding to expectations that shipping risks could moderate.
Technical Outlook for WTI
Price action has turned more bearish after WTI failed to hold above the 100-day SMA at $88.19 and then slipped beneath the 50-day SMA at $81.26. The RSI has fallen below 50 after a brief move into overbought territory, while the MACD remains positive but is losing altitude. Support sits at the 200-day SMA near $74.78, and a daily close below it could refocus attention on $67-$65; resistance is first seen at $81.26, then around $88.19 and the $90 level. WTI is a US-sourced, light and sweet benchmark priced in US Dollars; inventory updates from API and EIA can move prices, with their figures typically within 1% of each other 75% of the time, while OPEC and OPEC+ supply decisions remain a key driver.
