West Texas Intermediate (WTI) Oil hit a three-week high on Wednesday as geopolitical tensions in the Middle East continued to weigh on market sentiment. The U.S. benchmark was quoted at approximately $85.20 per barrel, reflecting a near-1% gain during Wednesday’s trading session.
Data from the U.S. Energy Information Administration (EIA) revealed a 4.405 million barrel increase in crude oil inventories for the week ending August 14, contrary to market expectations of a 0.6 million barrel decline. This upward adjustment in supply metrics typically exerts downward pressure on prices, yet geopolitical uncertainties offset this trend.
Efforts to reopen the Strait of Hormuz remain unresolved following the expiration of the U.S.-Iran 60-day memorandum of understanding on Monday. Iran has reaffirmed its stance that the waterway will stay closed until the U.S. fulfills the terms of the interim agreement. Concurrently, joint discussions between Iran and Oman to establish shared management of the Strait have not progressed meaningfully.
U.S. President Donald Trump reiterated on Truth Social that “no talks or conversations are scheduled with the Islamic Republic of Iran,” emphasizing that the naval blockade remains active. However, in a separate press briefing, Trump hinted at potential future negotiations and noted that several vessels transited the Strait of Hormuz overnight. Despite these statements, shipping activity remains subdued, with Kpler data indicating only six commodity vessels crossed the Strait on Tuesday—a decline from nine on Monday and below the recent average of eleven, per Reuters.
Technical Analysis
The technical outlook for WTI remains bullish, supported by sustained prices above critical moving averages, including the 21-day and 200-day simple moving averages (SMAs). The relative strength index (RSI) at 58 indicates positive momentum without approaching overbought territory, while the moving average convergence divergence (MACD) remains positive, reinforcing the potential for continued upside. A decisive breakout above the $86 100-day SMA could signal a move toward the July high of $92.25. Key support levels are identified at the $82 (21-day SMA) and $76 (200-day SMA) zones, which may attract buying interest if a corrective pullback materializes.
