WTI Price Forecast: Holds key 20-day EMA amid Middle East conflicts
- The Oil price gains ground below $90.00 as Iran dismisses any direct talks with the US regarding the resolution of Middle East conflicts.
- US President Trump instructed a pause on scheduled military strikes on Iran’s power plants.
- The war damage to energy infrastructure amid Middle East conflicts would keep the oil price on the front foot.
West Texas Intermediate (WTI), futures on NYMEX, is up 2% to near $90.00 during the European trading session on Tuesday. The oil price holds early gains, driven by Iran’s refusal to be involved in any direct talks with the United States (US) regarding the end of conflicts in the Middle East.
The oil price has gained ground on Tuesday after plunging the previous day, following the announcement by US President Donald Trump that he has instructed the Department of War to pause military attacks on Iran’s power plants for five days, as we are having “very good and productive conversations” with Tehran regarding a complete and total resolution of our hostilities in the Middle East.
On Monday, US President Trump also said that Iran wants to make a "deal badly," adding that a deal could be reached within five days or even sooner”.
Meanwhile, market experts are betting on persistent strength in the oil price, citing that the damage to energy infrastructure in the gulf countries won’t be repaired soon. “The war has resulted in lasting damage to infrastructure, so even if it's over soon, energy prices may well remain higher,” analysts at Capital Economics said.
WTI technical analysis
WTI US OIL trades higher to near $89.24 as of writing. The near-term bias stays bullish as price holds well above the rising 20-day Exponential Moving Average (EMA) near $86, keeping the recent uptrend intact despite last week’s setback from the $98 region.
The 14-day Relative Strength Index (RSI) at 58 signals positive momentum without overbought stress, suggesting that buyers retain control after the strong run from the mid-$60s base.
Initial resistance is seen at the recent high around $99, where the prior advance stalled, and a daily close above this barrier would open the scope toward the psychological $100 area. On the downside, immediate support emerges at the 20-day EMA near $86, with a break lower exposing further downside toward the $82 zone, where prior consolidation and the rising trend context would be tested.
(The technical analysis of this story was written with the help of an AI tool.)
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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