Over the past 24 to 48 hours, WTI Crude oil prices experienced significant volatility. The closing price on April 13 dropped sharply to $99.08 from the prior session’s $104.95, marking a decline exceeding 5%. This dramatic price shift was primarily driven by escalating tensions in the Middle East. Following the U.S. announcement on April 12 to blockade the Strait of Hormuz, a crucial artery for global oil shipments, the energy supply chain came under heightened pressure. Since the U.S. and Israel’s strikes against Iran in late February, U.S. benchmark WTI crude has become a vital “strategic asset” amidst growing geopolitical risks.

As peace talks between the U.S. and Iran failed, and America enforced the blockade, oil prices surged back near the $100 level, reflecting fears of disrupted supply. However, Saudi Arabia’s restoration of its East-West pipeline to full capacity has provided some relief by ensuring alternative oil flow routes remain fully operational.

For the average investor, this means oil prices in the short term are firmly tied to geopolitical risk, particularly disruptions around key oil transit routes. WTI crude, as a global benchmark, mirrors concerns over energy security and supply instability; any deterioration in the U.S.-Iran conflict swiftly impacts pricing. Investors holding energy assets should be prepared for heightened volatility and closely monitor developments in the Middle East to gauge future price movements.

Daily Chart

The daily chart shows that after bottoming out around late March, WTI Crude Oil tested highs near $112 earlier this week before experiencing a sharp pullback amid rising Middle East tensions. The 20-day and 50-day moving averages are converging, and Bollinger Bands have widened, indicating increased volatility. The MACD remains below zero but is oscillating near the baseline, signaling indecision between bulls and bears. Overall, the trend is short-term bearish with fluctuating momentum, and key support levels must hold to prevent further declines.

1H Chart

The hourly chart over the past 3-5 days highlights sharp oscillations in price, particularly between April 12th and 13th as prices dropped from above $105 down to the mid-$90s before rebounding slightly. Short-term moving averages show bearish crossovers, and the MACD histogram weakens, with RSI hovering near oversold levels but no clear reversal yet. Bollinger Bands are expanding, reflecting heightened volatility. A notable hammer candlestick on April 13th suggests short-term support and some buyer interest, although the overall picture remains unstable.

Technical Trend:  The current trend for WTI Crude Oil is a volatile downward correction with cautious bearish bias, accompanied by heightened uncertainty and price swings. Traders should exercise caution as the short-term landscape remains choppy and unpredictable.

WTI Crude Oil’s price action currently faces a confluence of geopolitical risks and technical pressure. The MACD and moving averages show waning momentum, with elevated intraday volatility. The price is near key support zones, and the formation of a hammer candlestick pattern indicates a potential for short-term rebounds. However, without a breakout above recent highs, downside risk remains. Traders should monitor Bollinger Band widths and volume for breakout signals to exploit short-term trading opportunities amid volatile swings.

There are no significant or directly relevant economic events scheduled on today’s global economic calendar that would impact WTI Crude Oil. Market attention will remain focused on ongoing geopolitical developments in the Middle East, with price movements driven primarily by news flow and market sentiment rather than fundamental economic data.

Resistance & Support

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