Oil Analysis for Today, Tuesday, August 18, 2026

Crude oil prices continue to rise for the third consecutive day; West Texas Intermediate (WTI) is approaching the $85.00 per barrel mark, while Brent crude holds above $91.00 per barrel, with both benchmarks hitting their highest levels in two weeks.

1. Fundamental and Market Drivers

Geopolitical Risk Premium: Stalled talks regarding a potential de-escalation, combined with renewed concerns over supply chains through the Strait of Hormuz, have driven up the geopolitical risk premium in the markets.

Anticipated Supply Deficit: Reports from the International Energy Agency (IEA) indicate a potential supply deficit during the current quarter, providing structural support for oil prices in the near term.

2. Technical Analysis of WTI Crude Oil Levels

Overall Trend: Bullish in the short term, characterized by the formation of higher lows and a breakout above the key 20-day and 50-day moving averages.

3. Expected Intraday Trading Scenarios

Bullish Scenario (Most Likely): Continued trading above $83.80 supports a breakout past $85.40, targeting the $87.00–$87.50 range.

Bearish Scenario (Corrective): A drop below $83.50 could trigger a profit-taking correction targeting $82.00 before a renewed attempt to rise.