FX.co ★ Blackpink | CL/Crude Oil

US Crude Oil price gains follow-through buying on the second consecutive day and rises to its highest since July 23 in the initial hours of the European session today. Bulls will look to build on the momentum above the $92.00 level amid ongoing tensions between the United States and Iran. The latest development in connection with the ongoing Middle East Crisis involves US troops hitting and turning off three Iranian oil tankers over the weekend as a response to the IRGC ballistic missile attack on two US Navy warships in the region. Commodity strategists at TD Securities believe the latest outbreak of geopolitical tensions signals the precarious state of the current détente in the energy market. As they say, "renewed hostilities between the US and Iran continues to highlight the fragility of any non-concrete deal or short-term de-escalation" and show how quickly sentiments about commodity supply can shift without a lasting agreement. At the same time, Iran said that it will take action to counter any attacks by the USA on its facilities, emphasizing the vulnerability of the energy infrastructure in the region. In addition, Iran's security chief, Mohsen Rezaei, said the country is preparing to impose a total blockade of the Strait of Hormuz in response to economic sanctions. It thus seems like yet another supportive element behind the black liquid, reinforcing the bullish view in place and suggesting that any possible correction should be relatively well received and contained. To the upside, the swing high formed in July around $93.25 may serve as the next resistance level to watch, and its clearance would open room for additional gains. Crude WTI oil maintains a bullish short-term setup, with prices above the 100-day Simple Moving Average at $85.24 and the 61.8% Fibonacci retracement level at $91.59. With price still trading above these two levels, the bulls keep the upper hand and could push further towards higher resistance levels. Technical indicators are reinforcing the bullish setup. The RSI (14) is nearing the 60s, showing strong buying pressure but not yet overbought. The MACD line is above zero and the MACD signal line. The growing positive histogram confirms rising upside momentum. Negative pressure would come from the 50% Fibonacci retracement zone of $86.78, which forms the first level of support. Defending it would sustain the current positive pattern and facilitate the rally's continuation. The next strong support level is the 100-day SMA at $85.24; a breakdown would weaken the bullish pattern and increase the chances of a larger correction. The first upside resistance level is the 61.8% Fibonacci retracement at $91.59, and a breakout would affirm stronger buying pressure. Further movement higher would bring the 78.6% Fibonacci retracement level at $98.44 within reach. If the bullish trend continues with strength, focus could gradually shift to the former swing high of $107.16. Reaching it would be an important extension. Nevertheless, traders should watch RSI levels, as overbought conditions could increase the odds of a pullback. As a result, WTI remains bullish as long as it stays above $85.24 and the Fibonacci support. Bulls gain strength above $91.59 and have two upside targets at $98.44 and $107.16. Meanwhile, a breakdown below $86.78 will weaken bullish momentum, while a move below $85.24 will signal greater downside risk.