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WTI trades higher as Strait of Hormuz reopening hopes lift crude risk premium
WTI is holding above the 200-day SMA near $76.8, with traders waiting for acceptance above $78.0 to extend gains.
WTI crude is starting the week firmer, supported by geopolitical risk tied to the US-Iran standoff around reopening the Strait of Hormuz, according to FXStreet. The newsletter said the benchmark US oil contract touched a four-day high in the Asian session.
Iran’s talks with Oman to establish a safe shipping route are nearing an agreement, FXStreet reported. Iran also reiterated conditions for a full reopening that include an end to the US naval blockade, the removal of sanctions, and compensation for war damage.
FXStreet also pointed to additional risk factors, noting Iran-backed Houthi militants in Yemen claimed an attack on Saudi Arabia’s Jazan refinery, which kept a geopolitical risk premium in play.
On the technical side, FXStreet said WTI’s modest bullish bias remains intact above the 200-period simple moving average near $76.8 and the 61.8% Fibonacci level around $76.42. It flagged resistance around $79.43 at the 50% retracement, then $82.43 at the 38.2% level and $86.15 at the 23.6% retracement, while a decisive break below the $76.8 to $76.4 support area would weaken the constructive tone and raise downside correction risk.
Latest closeWTI crude $78.07 ▲3.8%