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WTI trades near $84.90 as Middle East shipping disruption boosts crude fears
WTI’s rise comes as shipping through key chokepoints like the Strait of Hormuz and Bab el-Mandeb is disrupted, while investors await the EIA weekly crude oil inventory report.
WTI, the US crude oil benchmark, was trading around $84.90 in early European trading on Wednesday as higher tensions in the Middle East stoked fears of additional supply disruptions and trade impacts, FXStreet reported.
The outlet cited concerns that shipping traffic through the Strait of Hormuz has essentially halted, lifting crude prices. It also pointed to statements from Yemen’s Houthis saying they closed the Bab el-Mandeb strait to Saudi-linked shipping in retaliation for the kingdom’s blockade of Yemen and an attack on the international airport in Sanaa.
FXStreet added that the US Energy Information Administration’s weekly crude oil report is due later on Wednesday. A larger-than-expected inventory draw could support WTI higher, while a bigger build than expected could weigh on prices by signaling weaker demand or excess supply.
On the technical front, FXStreet said WTI holds below the 100-day simple moving average, which it described as capping the recovery. The outlet flagged resistance near the upper Bollinger Band around $85.95, with the 100-day SMA near $88.05, while initial support sits at the $80.00 psychological level.
Latest closeWTI crude $87.52 ▲3.1%