Crude oil prices moved higher Monday, Aug. 10, as renewed uncertainty over the Strait of Hormuz restored part of the geopolitical premium erased during last week’s sharp sell-off. Brent crude traded around $84.38 a barrel, while West Texas Intermediate was near $78.75, leaving WTI just below an important $79-$80 technical resistance area.
Both benchmarks lost more than 7% last week as traders became more optimistic that Iran and Oman could reach an agreement that would improve shipping through Hormuz. Those expectations have weakened after Iran attached further conditions to reopening the route, which historically handled roughly one-fifth of global oil flows.
WTI Crude Oil Faces a Decision Around $79-$80
The four-hour WTI chart supplied by analyst Viv shows crude recovering from support near the mid-$70s but running directly into a descending resistance line.
WTI Crude Oil Four-Hour $79-$80 Breakout. Source: Viv (@diepthaolong) on X
Viv highlights $79-$80 as the bullish breakout zone. A sustained move through that region would also put WTI above the chart’s $80.55 technical level, potentially shifting attention toward $85.91, $87.56 and $89.22.
However, this remains an analyst scenario rather than a confirmed forecast. The downside trigger sits around $76.30-$76.80. A decisive break below that support would weaken the recovery and could expose the $73.53 area followed by roughly $71.88.
That makes the current area unusually important: WTI is effectively caught between support in the upper $70s and resistance around $80.
Brent Rebounds After Last Week’s Oil Sell-Off
The supplied one-year Brent chart shows crude around the low-to-mid $80s after an exceptionally volatile year. Brent rose above $100 during earlier geopolitical disruptions before retreating sharply as supply fears eased.
Brent Crude Oil One-Year Price Trend. Source: tradingeconomics
Monday’s rebound is being driven primarily by renewed uncertainty around Hormuz. Reuters reported Brent near $84.04-$84.39 during Asian trading and WTI around $78.56-$78.77 as traders reassessed how quickly normal tanker traffic could return.
OPEC+ Supply and U.S. Inventories Limit the Upside
Geopolitical risk is supporting prices, but supply fundamentals are preventing the market from becoming one-sided.
OPEC+ has continued gradually returning production. The group moved toward another roughly 188,000-barrel-per-day increase for September, completing the phased return of voluntary supply reductions while retaining flexibility if market conditions deteriorate.
Meanwhile, the latest U.S. data added another bearish factor. Commercial crude inventories increased 2.5 million barrels to 407 million barrels in the week ended July 31, against expectations for a decline. Cushing inventories rose about 2.4 million barrels, although nationwide crude stocks remained about 6% below their five-year seasonal average.
China Demand Adds Another Question
Demand remains another major uncertainty. China averaged just 7.78 million barrels per day of crude imports during June and July, considerably below its pre-conflict pace as high prices encouraged the country to rely more heavily on stored oil.
For Monday, that leaves crude oil balanced between two powerful forces. A WTI break above $79-$80 would strengthen the near-term recovery, while failure there and a move below $76.30-$76.80 would put lower support back in play. For Brent, developments around Hormuz remain the strongest immediate catalyst.
