WTI holds above $95 on ‘closing gap’ in US-Iran standoff

The benchmark US crude oil West Texas Intermediate (WTI) remained on the back foot for the third consecutive day and trades around mid-$96.00s during the Asian session on Friday.

The commodity, however, managed to hold above a nearly two-week low, around the $95.00 psychological mark, touched the previous day.

A senior Iranian official said that no deal has been reached with the United States, but gaps have been narrowed.

Investors, however, remain skeptical about an elusive US-Iran peace deal amid major disagreements over Tehran’s nuclear programme and a standoff over the critical Strait of Hormuz.

This keeps geopolitical risks in play and acts as a tailwind for crude oil prices, warranting some caution for aggressive bearish traders.

From a technical perspective, the black liquid is holding just above a dense support band despite weakening momentum. The 200-period Simple Moving Average (SMA) at $95.09 and the upward-sloping trend-line support around $95.49 sit below the current price, still underpinning the broader uptrend.

On the downside, immediate support emerges near $96.32, followed by the former trend-line area at $95.49 and the 200-period SMA at $95.09. A clear drop through this cluster would expose deeper Fibonacci supports at $93.00 and $89.69, shifting the medium-term structure decisively in favor of sellers.

(Source: OANDA)