WTI slumps to near $89.00 as markets weigh Trump’s UN speech
- WTI price tumbles to near $89.00 in Tuesday’s early Asian session.
- Trump said he is in a “deciding mode” about what’s going to happen soon regarding the Iran war.
- Crude oil inventories rose by 1.786 million barrels in the week ended September 18, API said.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $89.00 during the early Asian trading hours on Wednesday. WTI falls after US President Donald Trump said the United States (US) held hours-long talks with Iran.
CNBC reported that Trump stated that Washington met with Iran’s delegation for three hours on the sidelines of the U.N. General Assembly in New York City. “It was a very good meeting,” said Trump.
Earlier Tuesday, Trump said he has a “big decision” to make on whether to seek a negotiated deal with Iran or maintain pressure on Tehran. He warned that he could annihilate Iran if there is no deal to end the war but also suggested an agreement could come soon amid a diplomatic push at the United Nations.
The Houthis on Saturday targeted the Saudi capital Riyadh and the port city Yanbu that serves as a key oil export terminal on the Red Sea. The Saudi military said it intercepted a ballistic missile launched at Riyadh, and its air defenses thwarted the attack on Yanbu.
US crude oil inventories see an unexpected weekly build. According to the American Petroleum Institute (API), crude oil stockpiles in the US for the week ending September 18 increased by 1.786 million barrels, compared to a rise of 7.14 million barrels in the previous week. The market consensus was for a decline of 500,000 barrels.
Oil market eyes renewed support as Saudi attack risks resurface
Analysts at OCBC suggest that crude prices may find a firmer footing, noting that "oil could see some renewed support after fresh attacks on Saudi Arabia over the weekend." They highlight that Houthis "claimed missile and drone strikes on Riyadh and an Aramco facility at Yanbu," although Saudi authorities reported that "the attacks on Yanbu and several other locations were thwarted, with no fresh damage to oil infrastructure" and no disruption to production so far.
Technical Analysis: WTI retains a constructive bias above the 100-day SMA
In the daily chart, the near-term bias of WTI US Oil remains bullish as price holds comfortably above the 100-day simple moving average (SMA) and the lower Bollinger Band support, suggesting a still constructive underlying trend despite the recent pullback from cycle highs. However, the latest Bollinger middle band acts as immediate overhead resistance, while a mid-range Relative Strength Index (RSI) at 47.42 hints at fading upside momentum rather than outright exhaustion.
On the topside, initial resistance is located at the Bollinger middle band at $92.10, ahead of the upper Bollinger Band near $102.40, which caps the broader bullish channel. On the downside, immediate support is seen around the $89.10 area as a short-term pivot, followed by the 100-day SMA at $85.00 and the lower Bollinger Band at $81.75, where a deeper correction would be expected to attract fresh buying interest to preserve the prevailing uptrend.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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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