Oil Analysis – Thursday, August 20, 2026

Crude oil prices (Brent and West Texas Intermediate - WTI) are experiencing a notable upward trend, driven by a combination of geopolitical and technical factors:

Fundamentals:

Geopolitical Factors: Ongoing tensions and confrontations near the Strait of Hormuz, alongside escalating friction between the United States and Iran, are injecting a significant "risk premium" into prices and fueling concerns over potential supply disruptions.

Inventory Data: A decline in US crude oil inventories is providing a positive boost to domestic supply-demand dynamics.

Expected Trading Scenarios:

Bullish Scenario (Ongoing):

For WTI: A sustained break above $86.00 paves the way for continued upward momentum toward the $90.00 and subsequently $94.00 levels.

For Brent: Stability above $91.00 supports targeting the $93.50 and $95.00 zones.

Bearish Correction Scenario:

A break below immediate support levels ($84.00 for US crude / $89.00 for Brent) could trigger profit-taking, testing the moving averages at $82.00 and $86.00, respectively, before the next direction is determined.