WTI remains broadly firm around $90 as oil shipments through Hormuz remain restricted
West Texas Intermediate (WTI), futures on NYMEX, consolidates in a tight range around $88.85 during the European trading session on Thursday. The rally in oil prices has paused after reaching the $90 mark; however, the outlook seems positive as the oil supply through the Strait of Hormuz, a critical chokepoint to almost 20% of global energy supply, remains restricted amid ongoing Middle East conflicts.
According to data from Kpler, four commodity vessels transited the Strait of Hormuz on Tuesday, down from 10 on Monday and below the 10-day average of around 13.
The resumption of the exchange of attacks between the United States (US) and Iran near the chokepoint has limited the oil supply.
The US launched fresh airstrikes on Iranian military targets, aiming to neutralize them before planting mines around the strategic waterway this week, following almost a month of relative calm. In retaliation, Iran also attacked US bases in Jordan and warned of further military aggression.
Meanwhile, the comments from US President Donald Trump on Wednesday indicated that the renewed attacks between both nations won’t last “too long”.
WTI Technical Analysis
In the daily chart, WTI US Oil trades at $88.86. The contract holds a bullish near-term bias as it remains above the 20-period Exponential Moving Average (EMA) at $84.25, keeping the broader uptrend intact. The Relative Strength Index (14) at 61.69 stays in positive territory but below overbought levels, suggesting firm yet not overstretched bullish momentum as price consolidates near recent highs.
On the downside, initial support is seen at the 20-period EMA at $84.25, where buyers are likely to defend the current advance on any pullback. As long as WTI holds above this moving average, the technical structure favors further upside exploration, with dips toward the EMA likely to attract renewed demand rather than signal a trend reversal.
