WTI Oil recovers as Iran tensions ease, supply glut limits upside

💡 DMK Insight

WTI crude oil’s rise to $59.80 signals potential bullish momentum, but traders should tread carefully. The 1.60% increase today could be a reaction to ongoing geopolitical tensions and supply constraints, which often drive prices higher. However, it’s crucial to consider that this level is near recent resistance points. If WTI can break above $60, we might see a more sustained rally, but failure to hold this level could lead to a quick pullback. Keep an eye on the weekly chart for confirmation of this trend. Additionally, monitor the broader energy sector, as movements in oil often correlate with natural gas and energy stocks. A spike in oil prices can lead to increased volatility in these correlated assets, so be prepared for potential cascading effects. On the flip side, if global economic indicators show signs of slowing demand, this could quickly reverse the bullish sentiment. Watch for key economic reports next week that could impact oil demand forecasts, particularly from major consumers like China and the U.S.