WTI Crude's 13% May Drop Tests 87.60 Support Zone

West Texas Intermediate crude oil is on track for its worst month since April 2025, with futures down 13% from 1 May through 28 May. The selloff has turned WTI into the worst performer among major cross-asset classes this month, breaking a four-month winning streak.

The primary catalyst is a potential resolution to the three-month US-Iran conflict. A tentative 60-day ceasefire extension and separate talks on Tehran's nuclear program have raised the probability that the Strait of Hormuz will reopen. That prospect directly undermines the supply-risk premium that had been built into crude prices since February.

WTI's Technical Setup: Minor Downtrend Below Key Moving Averages

The simple read is that WTI is entrenched below both the 20-day and 50-day moving averages, with the 100.00 psychological level now acting as resistance. The 20-day and 50-day MAs converge near that round number, creating a dense overhead supply zone.

The better market read focuses on the reaction at 87.60, the gap fill from 20 April 2026. This is the first meaningful support below current prices. A clean break below that level would open the path toward 81.94 to 81.85, which combines the 17 April and 11 March 2026 lows with the lower boundary of a minor descending channel.

Resistance levels are stacked tightly above. The 97.40 high from 26 May is the first hurdle, followed by the 100.00 zone where the 20-day and 50-day MAs sit. Above that, 102.56 marks the 22 May high and the 61.6% Fibonacci retracement from the 19 May high to the 29 May intraday low.