WTI Crude Oil Futures Settle at $89.31, Down 3.12% as Rally Fails at Key Resistance
Key Takeaways
- •WTI crude settled at $89.31, declining $2.88 or 3.12% after failing to hold above the 50% Fibonacci retracement level at $93.26.
- •Despite the session loss, WTI recorded a weekly gain of $7.51, or 9.17%, highlighting significant volatility in oil markets.
- •The 100-day moving average at $89.90 remains a pivotal technical threshold, with WTI closing back below it after briefly trading above on Thursday.
- •Brent crude fell $3.91, or 3.88%, settling at $96.78 and slipping back under the $100 mark alongside broader selling pressure in oil markets.
- •Both benchmarks experienced sharp intraday swings as markets continue to weigh tight global supply against uncertain demand heading into the second half of the year.
WTI crude oil futures settled at $89.31 on the session, posting a loss of $2.88, or 3.12%. Prices traded in a wide intraday range between $87.68 and $92.83. Despite the sharp pullback, crude still closed the week higher by $7.51, or 9.17%, underscoring the pronounced volatility that has characterized recent trading. WTI, the U.S. crude benchmark tracked globally alongside Brent, has seen amplified swings as markets weigh supply tightness against demand uncertainty heading into the back half of the year.
From a technical standpoint, the daily chart revealed that buyers pushed toward $93.50 on Thursday, briefly exceeding the 50% retracement level of the decline from the March high to the July low, which sits at $93.26. That breakout attempt quickly failed, drawing sellers back into the market. Friday's intraday rally peaked at $92.83 — approximately 43 cents short of the key retracement level — before reversing lower, reinforcing that zone as a significant area of resistance.
Another critical technical marker is the 100-day moving average, currently at $89.90. WTI had closed above that moving average on Thursday, but Friday's decline pushed prices back below it. The 100-day moving average will continue to act as an important barometer for the broader trend: sustaining a position above it would strengthen the bullish case, while remaining below keeps sellers in control from a technical perspective.
Brent crude, the international benchmark that influences pricing for roughly two-thirds of the world's oil, also came under selling pressure, settling back below the $100 mark at $96.78, a decline of $3.91, or 3.88%, on the session.