WTI crude oil price holds above $73 as supply fears rise amid Middle East tensions
WTI crude oil consolidates above $73 as geopolitical risks and shrinking U.S. stockpiles support price
WTI crude oil traded around $73.23 per barrel on Friday, poised for its third consecutive weekly gain, as geopolitical risks deepened across the Middle East. Market sentiment was rattled following intensified Israeli strikes on Tehran after an Iranian missile reportedly struck a major Israeli hospital.
Key highlights
- Oil prices edge higher for a third week, trading near $73.23 per barrel
- Middle East conflict escalates as Israel strikes Tehran, boosting supply concerns
- U.S. crude inventories post largest weekly drop in a year, lending bullish support
Geopolitical escalation lifts oil despite technical pause
With President Donald Trump considering direct military action in the region—potentially within the next two weeks—concerns around broader supply disruption continue to rise.
USOIL (WTI) price dynamics (Source: TradingView)
Despite the deteriorating regional situation, Iranian crude exports have remained unexpectedly robust, averaging 2.2 million barrels per day this week, the highest in over a month. This signals Iran’s effort to maintain energy trade even as political pressure mounts. Simultaneously, a significant draw in U.S. crude inventories helped support bullish sentiment. Data released earlier in the week showed the largest single-week decline in U.S. stockpiles in a year.
Price compression suggests breakout may be near
Technically, WTI crude is consolidating just above $73 after peaking at $75.37 earlier this month. Price remains wedged within a tightening structure, with resistance near $74.80 and support forming around $72.50. While buyers remain present, recent rejections at higher levels suggest waning momentum.
Momentum indicators signal indecision. RSI on lower timeframes lingers near 41, while MACD is flattening, showing lack of conviction. However, Bollinger Bands are narrowing, indicating reduced volatility and an imminent breakout. A sustained push above $75 could open the door toward $76–$77.80, while a break below $72.50 would expose downside risks to $70.
In our previously discussed WTI outlook, we noted that the $72.50–$75.00 band would be key in determining short-term direction. That zone remains pivotal. Until price decisively breaks either side of this range, near-term action is expected to stay volatile and reactive to geopolitical cues.
