WTI Crude Could Strenghten Over $92.38, Weaken Under $89.76

U.S. West Texas Intermediate crude oil futures are trading flat early Tuesday after easing the previous session as the possibility of Iranian oil hitting the market weighed on sentiment.

Meanwhile, more bullish signals continued to underpin the market with Saudi Arabia raising prices and the unexpected shutdown of a U.S. refinery. This was in addition to strong global demand, ongoing tensions in Eastern Europe and potential supply disruptions due to cold U.S. weather conditions.

At 04:30 GMT, March WTI crude oil futures are trading $91.12, down $0.20 or -0.22%. On Monday, the United States Oil Fund ETF (USO) settled at $64.68, down $0.23 or -0.35%.

Gains are being capped ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through $93.17 will signal a resumption of the uptrend. A move through $81.90 will change the main trend to down.

The minor trend is also up. Taking out a pair of minor bottoms at $86.75 and $86.34 will change the minor trend to down. This will shift momentum to the downside.

On the upside, the key resistance is a long-term Fibonacci level at $92.38.

On the downside, the nearest support is a pair of 50% levels at $89.76 and $87.54. If momentum shifts to down then look for the selling to possibly extend into the next pivot at $83.59.

Daily Swing Chart Technical Forecast

The direction of the March WTI crude oil market on Tuesday is likely to be determined by trader reaction to $91.62.

Bearish Scenario

A sustained move under $91.62 will indicate the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into $89.76. If this level fails then look for a decline into $87.54, followed by the minor bottoms at $86.75 and $86.34.

Bullish Scenario

A sustained move over $91.62 will signal the presence of buyers. The first upside target is $92.38, followed by $93.17. This price is a potential trigger point for an acceleration to the upside.