West Texas Intermediate (WTI) Crude Oil rose to around $60.33, up 1.6% on the day due to supply disruptions from Kazakhstan’s Tengiz oil field. Tensions between the US and the EU weakened the US Dollar, making dollar-denominated Crude more affordable for overseas buyers.
Technical Momentum for WTI
Technical indicators show improving momentum for WTI, with it testing the 100-day Simple Moving Average (SMA) near $59.84. A daily close above $60.00 and the 100-day SMA would indicate further recovery, with immediate resistance seen at $62.19. The 50-day SMA provides immediate support, followed by support at $55.90.
Momentum indicators are turning modestly bullish, with the RSI near 59, suggesting room for further gains. The MACD remains positive, with the line above its signal line and the histogram showing positive bars.
WTI Oil, sourced in the US, is a high-quality crude known as “light” and “sweet.” Its price is driven by supply and demand, global growth, political instability, and US Dollar value. Weekly inventory reports from API and EIA influence prices, with EIA data deemed more reliable. OPEC, a group of 12 Oil-producing nations, impacts WTI prices through production quotas.
We are seeing signs of strength in WTI crude this week, with prices pushing back toward the $80 mark. Renewed concerns over shipping disruptions in the Red Sea are tightening supply expectations, while a slightly weaker U.S. Dollar is also providing support. This makes oil more attractive for buyers using other currencies.
Market Indicators and Trading Strategies
This view is supported by last week’s Energy Information Administration (EIA) report, which showed a surprise crude inventory draw of 4.1 million barrels when analysts expected a small build. This data suggests underlying demand remains robust despite some mixed economic signals. These fundamental factors provide a solid floor for prices.
This rebound is significant when we remember the sell-off during the final quarter of 2025, where fears of a global slowdown pushed prices down from the low $90s. The market found a bottom near $72 just before the new year, and we now see buyers stepping back in with more confidence. The decision by OPEC+ in late 2025 to maintain production cuts continues to underpin the market.
From a technical standpoint, we need to see a daily close above the 100-day moving average, currently around $80.50, to confirm this bullish momentum. A decisive break above the January 12th high of $82.00 would signal a shift in market structure and open the door to further gains. On the downside, the 50-day moving average near $77 provides the first line of support.
For derivative traders, this environment suggests looking at call options or bull call spreads to capitalize on further upside toward the mid-$80s. Selling cash-secured puts below the current support level of $77 could also be a viable strategy to collect premium. Implied volatility has picked up with the recent geopolitical news, making option premiums more attractive.
