Crude Oil Futures Settle at $94.14 After $0.40 Gain

Oil futures closed at $94.14 after a gain of $0.40, or 0.43%, with supply risks still very much in view amid Middle East tensions.

The day's headlines were driven by reports that Prime Minister Benjamin Netanyahu of Israel and President Trump spoke last week about the possibility of renewed military action against Iran. Netanyahu was said to want to act prior to the elections; Trump, according to the reports, told him to get ready without making any firm pledge to back a strike. Israel's defense minister cautioned that anyone striking Israel would pay the price, no matter when elections are held. Iran's IRGC navy commander, meanwhile, was said to have threatened to sink American vessels moving toward the entrance to the Strait of Hormuz.

Yemen stayed another area of high tension. The Saudi-led coalition said it hit a Sanaa oil facility that the Houthis use to support attacks, while Yemen's deputy defense minister characterized the fight as one open on every front. Trump cautioned the Houthis that he would still be in office after the elections and would remember their actions. France said it was helping to safeguard navigation in the Red Sea and Bab al-Mandab. All of these reports kept the threat of interruptions to energy supply and major shipping lanes squarely in front of traders.

From a technical perspective, buyers held the line on support during the early part of the session. The session's low of $91.70 remained just over the 38.2% retracement at $91.60, and further support was provided underneath by the rising 100-hour moving average, now at $91.54, as well as the rising 200-hour moving average at $90.94. Sellers got their chance to test that area but failed to break through.

From there, a rebound carried the price beyond the previous session's high of $94.36 to a session peak of $94.70. However, the close at $94.14 left the price below that prior-session high, so buyers still have work to do. A move back over $94.36, followed by $94.70, would reinforce the bullish stance. Sellers, meanwhile, would need to push through the retracement and both hourly moving averages to seize greater control. For the moment, support has held and buyers keep the technical edge.