Crude oil is trading around $90.12 (₹8,560), after WTI jumped more than 5% in the previous session and reached its highest level since late July. The market is not simply trending higher; it is moving through unusually wide daily ranges as geopolitical developments quickly change supply expectations.

That makes the current setup coiled, not calm. Price is holding near a major psychological level, but a 3% daily move can now change the short-term picture quickly. Recent August trading also showed a $3.62 session range exceeding the 14-day average true range of $3.10, reinforcing the case for wider position sizing assumptions.

For traders, the message is simple: do not size this market as if crude is moving in its usual range. The range itself is now part of the trade.

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▼ Support

$88

▲ Resistance

$92

If crude holds above $88 and buyers continue defending the current range, the first test is $92. A sustained move through that level would suggest the elevated-volatility trend is still favouring buyers.

If $88 gives way, the market could quickly rotate toward $85 rather than making a slow move lower. In a market where daily ranges are already stretched, traders need to allow for larger price swings once a key level breaks.

Strait of Hormuz supply risk

The market remains highly sensitive to changes in oil flows through the Strait of Hormuz. Reuters reported that 17 million barrels passed through the strait on Monday, but separate shipping data showed traffic fell sharply on Tuesday, highlighting how quickly the supply picture can change.

That uncertainty is keeping crude prices elevated and helping maintain the wide-range environment. Until flows become more predictable, traders should expect volatility to remain part of the setup rather than treating large daily moves as unusual.

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