WTI Oil Outlook: Oil Prices Remain at the Back Food on Fading Supply Concerns but Biased Higher above $90

Technical analysis of Forex market

WTI oil consolidates on Wednesday following a 2.4% drop on Tuesday, after concerns about the disruption of oil supplies on the first wave of US and European sanctions on Russia eased.

Also, the signals of potential return of Iranian oil to the market limited gains, however, fears of further escalation of crisis over Ukraine, continue to underpin the oil prices.

Near-term action remains above rising 10DMA for the third straight day and keep pivotal $90 support out of reach that keeps bias with bulls.

On the other side, fading bullish momentum on daily chart, suggests that the downside is still vulnerable, with easing of geopolitical tensions, or at least fading concerns about global supply, to keep oil prices under pressure.

Fresh near-term bears may gain momentum on loss of $90 support and risk test of next key level at $87.44 (Feb 18 higher low), break of which would generate initial reversal signal on completion of failure swing pattern on daily chart.

Otherwise, the price action is expected to stay within extended consolidation.

Res: 92.33; 93.14; 94.90; 95.79.
Sup: 90.43; 90.00; 89.04; 88.47.