West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $91.75 during the early European trading hours on Friday. The WTI price declines as traders brace for the outcome of make-or-break talks between the US and Iran on Saturday in Pakistan. The US delegation will be led by US Vice President JD Vance, special envoy Steve Witkoff, and Jared Kushner.
A potential long-term deal with Iran could drag the WTI price lower. On the other hand, if negotiations collapse this weekend, the black hold could extend its upside as supply disruptions persist.
Technical Analysis:
In the daily chart, WTI US Oil holds well above the 100-day Exponential Moving Average (EMA) at $75.13, keeping the broader bias constructive despite the recent pullback from the highs. The Relative Strength Index (RSI) at 51 suggests momentum has cooled back to neutral after the prior overbought phase.
On the topside, initial resistance is located at the Bollinger middle band near $95.65, en route to the $100.00 psychological level. The upper Bollinger band of $105.05 acts as a stronger barrier if buyers regain control. On the downside, immediate support is aligned with the lower Bollinger band around $86.20, ahead of stronger structural demand at the 100-day EMA near $75.13, where the broader uptrend would be expected to attract dip-buying interest on deeper setbacks.
(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.
Source: https://www.fxstreet.com/news/wti-price-forecast-declines-below-9200-but-holds-bullish-bias-ahead-of-us-iran-talks-202604100540
