WTI Price Forecast: Climbs to one-week high; bulls await move beyond $65.00 mark

• WTI attracts buyers for the second straight day amid concerns about supply disruptions.

• The technical setup favors bulls and backs the case for further near-term appreciation.

• Any corrective decline towards the $64.00 mark could be seen as a buying opportunity.

West Texas Intermediate (WTI) US Crude Oil prices edge higher for the second straight day – also marking the fourth day of a positive move in the previous five – and climb to an over one-week high during the Asian session on Tuesday. The commodity currently trades around the $64.65 region, up 0.35% for the day, bolstered by an escalation of the conflict between Russia and Ukraine.

The recent Ukrainian drone attacks targeted Russian energy facilities, shutting down facilities accounting for at least 17% of Russia's oil processing capacity, or 1.1 million barrels per day. This raises concerns about supply disruptions from Russia – the world’s second largest exporter – and turns out to be a key factor acting as a tailwind for the black liquid and backs the case for additional gains.

Investors, however, might wait for the Organization of the Petroleum Exporting Countries and their allies (OPEC+) meeting on September 7, for clues on further output hikes from the group. This, along with important US macro releases scheduled at the beginning of a new month, should provide some meaningful impetus to Crude Oil prices and help in determining the next leg of a directional move.

From a technical perspective, last week's swing high, around the $65.00 neighborhood, could act as an immediate hurdle. Given that oscillators on the daily chart have just started gaining positive traction, some follow-through buying should pave the way for additional gains. Crude Oil prices might then climb to the $65.65 barrier before aiming to reclaim the $66.00 mark and test the $66.20-$66.25 hurdle.

On the flip side, the $64.00 round figure could offer immediate support ahead of the $63.70 region. A convincing break below the latter could drag Crude Oil prices to the $63.00 mark, below which the downward trajectory could extend further towards the $62.60-$62.50 region en route to the $62.00 handle. The latter should act as a key pivotal point, which, if broken, will be seen as a fresh trigger for bears.

WTI daily chart