WTI Consolidates After Geopolitical Rally Amid Inventory Draw
The price of West Texas Intermediate (WTI) crude oil has consolidated after a recent rally triggered by escalating tensions in the Middle East. Despite some profit-taking, WTI continues to receive support from concerns that conflicts could disrupt oil exports through strategic shipping routes. The latest EIA petroleum report showed a sharp decline in U.S. commercial crude inventories, exceeding market expectations and providing additional support for the demand outlook.
The Federal Reserve's decision to leave interest rates unchanged has also contributed to stable monetary policy, which has not weakened the dollar materially. However, investors remain cautious due to uncertainty surrounding future OPEC+ production policy and potential increased supply in response to higher prices.
The technical picture suggests that WTI is currently trading below its recent highs but remains above key support levels. A sustained move above $86 could improve the technical outlook and expose the market to another advance toward $88 to $90, while failure to reclaim this resistance could encourage a correction toward $83 or even lower.