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WTI edges up as Strait of Hormuz reopening prospects fade
WTI is around $82.13, supported by levels above the 21-day SMA near $81 and the 50-day SMA near $78, while the Strait of Hormuz remains closed unless sanctions and other conditions are met.
WTI oil is trading modestly higher on Tuesday after two-way price swings, with Middle East headlines continuing to inject volatility into energy markets, according to FXStreet. At the time of writing, WTI is around $82.13 and up more than 7% so far this week.
FXStreet links the intraday pressure to Qatar comments that Iran-Oman talks to reopen the Strait of Hormuz had reached an advanced stage, along with a Bloomberg report that Pakistan’s Defence Minister said the US and Iran were close to some sort of an arrangement. Prices then regained traction as shipping resumption through the Strait appears unlikely in the near term.
The outlet says Iran has stated the waterway will stay closed unless the US lifts sanctions, releases frozen Iranian assets, ends military threats, removes its naval blockade, and pays war reparations. FXStreet adds that an adviser to Iran’s Supreme Leader said the Strait would remain closed until Tehran’s conditions are met, keeping a geopolitical risk premium in oil prices.
Technically, FXStreet reports WTI holds a constructive near term bias while sitting slightly above the 21-day Simple Moving Average at about $81 and comfortably above the 50-day SMA near $78. The piece identifies support at the 21-day SMA around $81.33, then the 50-day SMA around $78.79, with deeper pullbacks potentially exposing $73.50 and $67.50, while resistance is flagged near the 100-day SMA at $86.82.
Latest closeWTI crude $82.30 ▲5.3%