WTI inches up above $92.00 on Qatari-mediated US-Iran talks, Saudi pipeline restart
- WTI price posts modest gains near $92.05 in Tuesday’s early Asian session.
- Qatari mediators expected to hold separate US and Iran talks.
- Saudi Arabia restored key about half the flows through its cross-country oil pipeline, bypassing the Strait of Hormuz.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $92.05 during the early Asian trading hours on Tuesday. WTI trades with mild gains as traders continue to assess the reports that Qatari mediators pledged to hold talks with the US and Iran in hopes of finding a peace deal to reopen the Strait of Hormuz.
On Sunday, US President Donald Trump rejected a proposal from Iran that would have reopened the Strait of Hormuz, per Reuters. However, the WTI price pared gains on expectations that Qatari mediators would hold talks with both sides. Iran's Foreign Minister Abbas Araghchi said on Monday that Tehran discussed proposals with Qatari mediators that are to be put to the US. He added that the US response will be conveyed to Iran through the Qatari mediators.
Araghchi stated that the conditions stressed by Iran's Supreme Leader must be implemented for the Strait of Hormuz to reopen. Meanwhile, uncertainty in the Middle East and worries about ongoing supply disruptions could boost the WTI price in the near term.
Saudi Arabia has restored about half the flows through its cross-country oil pipeline, bypassing the critical waterway after drone strikes halted the key export route earlier this month. This development might cap the upside for the black gold. Flows through the East-West pipeline to the Red Sea have reached at least 3.5 million barrels a day, according to Bloomberg.
Oil climbs back towards USD110 as US-Iran talks stall on Strait of Hormuz
Analysts at MUFG note that “one of the biggest movers overnight has been the price of oil which has risen back up towards recent highs at around USD110/barrel.” They explain that the move “reflects some disappointment over the lack of progress towards a deal to end the US-Iran conflict and re-open the Strait of Hormuz.” MUFG adds that “US and Iranian negotiators have reportedly been exploring a deal that would see Tehran reopen the Strait and Washington lift the blockade of Iranian ports,” but the absence of tangible progress is helping to keep crude prices elevated.
Technical Analysis: WTI keeps a bullish vibe above the 100-day SMA
In the daily chart, WTI US Oil retains a constructive near-term bias as it holds above the 100-day simple moving average (SMA) and the lower Bollinger Band. Price action is now just under the Bollinger 20-period SMA, which acts as immediate overhead resistance, while the Relative Strength Index (14) around 52 suggests moderate, still-positive momentum rather than overbought conditions.
On the topside, a sustained break above the Bollinger middle band at $93.65 would open the way toward the upper Bollinger Band near $100.80, where buyers could begin to face more serious supply. On the downside, initial support is seen close to the current area around $92.05, with stronger demand expected near the lower Bollinger Band at $86.55 and then at the 100-day SMA at $84.89, where a deeper pullback would test the integrity of the prevailing uptrend.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
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