WTI Price Forecast: Multi-year high above $126 looks possible

West Texas Intermediate (WTI), futures on NYMEX, give back some of its early gains after surging almost 28% to a fresh three-and-a-half-year high at around $113.00 during the early European trading session on Monday. The oil price corrects from its intraday high after reports that G7 members and the International Energy Agency (IEA) will discuss the joint release of emergency oil reserves, a move that will offer an interim relief on supply concerns.

Still, the pair holds significant gains at around $106.00 at the press time. The oil price delivers one of its highest one-day upside moves in history as conflicts in the Middle East have stretched to oil storage facilities in Iran, sparking global supply concerns.

Over the weekend, the United States (US) and Israel, in a joint operation, attacked several Iranian depots, according to the BBC.

Oil prices were already rallying as the Iranian military stopped the flow of oil from the Strait of Hormuz, a channel through which 20% of global oil is transported.

Meanwhile, the war in the Middle East is expected to escalate further as Iran has named Mojtaba Khamenei as its new Supreme Leader. US President Donald Trump signaled last week that the choice for Iran’s new supreme leader, which is made by Iran’s clerics, would be “unacceptable”, and he intends to pick a new one for them.

Surging oil prices amid Iran conflicts have prompted consumer inflation expectations in the entire world, a scenario that would limit global central banks from easing monetary conditions in the near term.

WTI technical analysis

WTI US Oil posts a fresh three-and-a-half year high at around $113.00 on Monday. The near-term bias is bullish as price holds well above the 10-week Exponential moving average, which is rising and currently near $74.25, underscoring a strong upside extension. The latest weekly candles mark an acceleration phase after a prolonged consolidation below the average, confirming a trend transition in favor of buyers.

The 14-day Relative Strength Index (RSI) at 86 indicates overbought conditions, but in the context of a fresh breakout it signals strong upside momentum rather than immediate exhaustion.

Initial support emerges at the psychological $100.00 area, with a deeper pullback meeting the rising 10-week EMA around $74.25. A break below that zone would weaken the bullish structure and expose the mid-$60s congestion area from the prior range. On the topside, immediate resistance is projected near the $120.00 region, followed by the multi-year high of $126.50. As long as WTI holds above $100.00, the path of least resistance remains to the upside.

(The technical analysis of this story was written with the help of an AI tool.)