West Texas Intermediate (WTI) Crude Oil increased to about $60.33, rising 1.6% today. This rise is due to supply issues from the Tengiz oil field in Kazakhstan. Tensions between the US and EU have weakened the US Dollar, making dollar-priced crude oil cheaper for international buyers.

Technical Momentum for WTI

Technical signals indicate growing momentum for WTI. It’s currently testing the 100-day Simple Moving Average (SMA) around $59.84. If it closes above $60.00 and the 100-day SMA, this could signal further recovery. Immediate resistance is found at $62.19. The 50-day SMA offers immediate support, followed by $55.90. Momentum indicators are showing a slight bullish trend, with the RSI near 59, implying potential for more gains. The MACD is also positive, with its line above the signal line and positive bars in the histogram. WTI Oil, sourced from the US, is renowned as “light” and “sweet” crude. Its price depends on supply and demand, global growth, political unrest, and the value of the US Dollar. Weekly inventory reports from API and EIA affect prices, with EIA data seen as more reliable. OPEC, consisting of 12 oil-producing nations, can also influence WTI prices through production limits. This week, WTI crude shows strength, pushing closer to the $80 mark. Renewed worries about shipping disruptions in the Red Sea are raising supply concerns, while a slightly weaker US Dollar is beneficial. This makes oil more appealing for buyers using other currencies.

Market Indicators and Trading Strategies

The latest Energy Information Administration (EIA) report bolsters this view; it revealed a surprise decline in crude inventory by 4.1 million barrels, contrary to analysts’ expectations for a small increase. This implies strong underlying demand despite mixed economic signals, providing a solid foundation for prices. This rebound is noteworthy, especially after the significant sell-off in late 2025, when fears of a global slowdown caused prices to drop from the low $90s. The market found support around $72, just before the new year, and we are now seeing renewed buyer confidence. OPEC+’s decision to maintain production cuts in late 2025 continues to support the market. From a technical perspective, we need a daily close above the 100-day moving average, currently around $80.50, to confirm the bullish trend. A strong break above the January 12th high of $82.00 would indicate a market shift and open the door for further gains. On the downside, the 50-day moving average around $77 serves as the first support level. For traders using derivatives, this environment suggests considering call options or bull call spreads to take advantage of potential increases towards the mid-$80s. Selling cash-secured puts below the current support level of $77 might also be a wise strategy to earn premium. Implied volatility has increased due to recent geopolitical events, making option premiums more attractive. Create your live VT Markets account and start trading now.

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