Oil Prices Rebound, But Volatility Remains Amid US-Iran Tensions

Oil prices rebounded in early Tuesday trading after several days of losses, but the market remains volatile due to ongoing tensions between the US and Iran. The price of WTI crude oil rose to around $96.70 per barrel, while Brent oil traded near $101.80 a barrel.

The rebound is attributed to traders covering bearish positions, but it is considered weak and does not confirm a fresh recovery. The market's focus has shifted to the possibility of talks between the US and Iran during the UN General Assembly this week, which could ease fears of a wider supply disruption and put pressure on oil prices.

The situation in Saudi Arabia and Libya remains a concern, with the Houthis claiming new attacks on Riyadh and an Aramco facility in Yanbu. Lower output from the Sharara field in Libya also keeps the risk of supply disruption high, but Saudi Arabia has increased shipments through the Strait of Hormuz, easing immediate supply concerns.

WTI crude oil must hold above $93 to preserve its short-term recovery, while Brent oil needs to maintain support around $100 to keep a move toward $113 in view. The RSI remains above the midline for WTI, indicating positive momentum, but oversold conditions may lead to a rebound from current support levels.