West Texas Intermediate (WTI) crude futures on NYMEX are trading more than 1% lower, hovering near $93.10 during early European trading on Friday. Oil prices are under pressure as easing geopolitical tensions in the Middle East reduce supply concerns. Developments such as Israel’s commitment to avoid targeting Iranian oil infrastructure and the possibility of easing sanctions on Iranian oil shipments have contributed to this sentiment.
On Thursday, Israeli Prime Minister Benjamin Netanyahu stated that Israel would refrain from further attacks on Iranian gas facilities following a request from US President Donald Trump, according to CNN. This comes after earlier strikes by Israeli Defense Forces (IDF) on Iran’s South Pars gas field, the world’s largest gas reserve.
Meanwhile, US Treasury Secretary Scott Bessent indicated in an interview with Fox Business that the US could soon allow previously sanctioned Iranian oil shipments to enter the market, further easing supply-side fears.
Apart from supply dynamics, oil prices are also being weighed down by demand concerns. Hawkish signals from major global central banks, driven by rising inflation expectations linked to higher energy costs, are raising fears of slower economic growth and reduced oil consumption.
At the time of writing, WTI crude is trading around $93.10. The short-term outlook has turned slightly bearish after failing to hold above the $100 mark. However, prices remain well above the upward-sloping 20-day Exponential Moving Average (EMA) near $84.70, suggesting the current move is a correction within a broader uptrend.
The 14-day Relative Strength Index (RSI) has cooled to 66.8 after previously reaching overbought levels above 80. This indicates that bullish momentum is easing, but not reversing entirely, pointing more toward a healthy pullback than a deeper sell-off.
On the downside, immediate support lies near the 20-day EMA at $84.70, where recent buying interest could limit further losses. A decisive break below this level may lead to a decline toward the $80.00 zone. On the upside, resistance is firmly placed at $100.00. A move above this level on a closing basis could reignite bullish momentum and open the door toward the previous high near $113.80, while failure to break it keeps the corrective trend in place.
