Crude oil prices moved higher Monday as stalled U.S.-Iran negotiations and sharply reduced shipping through the Strait of Hormuz renewed concerns about Middle East supply. Brent crude futures
Crude oil prices moved higher Monday as stalled U.S.-Iran negotiations and sharply reduced shipping through the Strait of Hormuz renewed concerns about Middle East supply. Brent crude futures rose as much as 1% to $89.40 a barrel and traded near $89.20 by 0229 GMT, while West Texas Intermediate crude climbed to $82.83. Both benchmarks gained more than 5% last week.
The immediate driver remains the Strait of Hormuz. Ship-tracking data cited by Reuters showed only five commodity vessels crossed the waterway Saturday and none were registered Sunday, compared with 31 during the previous weekend. The slowdown followed attacks on tankers operated by Abu Dhabi National Oil Company and came as Iran said it had not decided to resume negotiations with the United States.
That supply risk is keeping Brent within reach of the psychologically important $90 level, but the market still faces resistance from softer demand expectations and rising U.S. inventories.
Brent Crude Approaches $90, but Technical Resistance RemainsThe supplied Brent TradingView chart places the benchmark around $88.81, with recent price action recovering from the low-$80s after finding support in the roughly $81-$84 area.
Brent Crude Oil 1-Hour Chart. Source: Çızıkçı Höstad (@TheCeduu)
The chart shows immediate resistance near $90, followed by a more substantial zone around $93-$95. A sustained break above that area would improve the technical outlook and bring the previous upper range back into focus.
However, the chart also presents a bearish alternative in which Brent fails below resistance and retreats toward the $77.59 level before testing a deeper support region around $72-$74. That remains a scenario rather than a confirmed move. For now, price is holding well above those lower support zones.
WTI Holds Above Key Moving Averages as Bulls Target $85-$87WTI also retains a constructive short-term setup. The supplied daily chart shows Friday's price near $82.41, above its 50-day exponential moving average at $81.16 and its 200-day EMA near $78.10.
The chart highlights $85-$87 as the main resistance zone. A convincing break above $87 would strengthen the bullish structure and potentially open room for a larger advance. Momentum indicators are less decisive, with RSI near 53 and MACD broadly flat, suggesting WTI is consolidating rather than accelerating.
A loss of the $81 area would weaken the setup, while the 200-day average near $78 provides the next important technical reference.
Fundamentals could also limit the rally. U.S. commercial crude inventories surged 17.4 million barrels in the week ended Aug. 7 to 424.4 million barrels, the biggest weekly increase since January 2023. The Energy Information Administration said stocks remained about 2% below their five-year seasonal average.
Demand forecasts have also softened. OPEC cut its 2026 global oil-demand growth estimate to 580,000 barrels per day, while the International Energy Agency expects demand to contract this year. Meanwhile, seven OPEC+ producers plan a 188,000-barrel-per-day production adjustment for September, adding another potential source of supply.
For crude oil prices, the near-term balance is clear: Hormuz disruption is supporting Brent and WTI, while inventories, weaker demand expectations and additional OPEC+ supply are limiting the case for an unchecked rally.
