Earlier reports suggesting the United States had agreed to lift oil sanctions while negotiations continue have now been denied by a U.S. official, helping reverse the sharp selloff seen earlier in crude oil trading. The clarification quickly shifted sentiment back toward tighter supply concerns and renewed buying interest in the energy market.

As a result, crude oil prices have rebounded strongly and are now trading up around 2% on the day near $103.00. Earlier in the session, prices had fallen sharply to a low of $98.60 as traders reacted to the initial headlines. However, that decline stalled at a key technical support zone.

The low price held near the 200-hour moving average at $98.88 and just above the 50% midpoint of the trading range from the April high, which comes in at $98.30. Buyers leaned against that support area, helping stabilize the market and keeping the broader bullish bias intact.

Momentum shifted more firmly back to the upside after the price moved back above the 100-hour moving average at $101.17. That break gave buyers renewed control from a short-term technical perspective and opened the door for a retest of today’s high at $104.37.

If buyers can push above that level, traders will next target a downward-sloping trend line that currently comes in near $105.85. A break above that trend line would strengthen the bullish technical picture further and could lead to another extension higher in crude oil prices.

Buyers remain more in control technically.