Key Points:
- WTI crude oil trades at $69.77, nearing a four-week high.
- US crude stockpiles drop by 3.34 million barrels, signaling tightening supply.
- Sanctions and tariffs on producers like Iran and Venezuela remain a risk.
- Reliance Industries halts Venezuelan oil imports due to tariffs.
- US oil and gas activity increases slightly, but executive sentiment stays cautious.
WTI Crude Oil Trades Near Four-Week High
WTI crude oil futures hovered around $69.77 per barrel on Thursday, just below a four-week high. The price remained supported by concerns about tightening global supply and strong demand.
The latest US crude stockpile data showed a drop of 3.34 million barrels, marking the largest weekly decrease since December. This was paired with declining gasoline inventories, further contributing to upward pressure on oil prices.
Geopolitical Risks Amplify Supply Concerns
Ongoing sanctions and tariffs imposed by the Trump administration continue to heighten concerns over supply disruptions, especially from Iran and Venezuela. The US sanctions on Venezuelan oil and 25% auto levies raise the risk of global oil supply disruptions. In response, Reliance Industries, operator of the world’s largest refinery complex, announced it would halt Venezuelan oil imports due to these tariffs.
Technical Analysis
Picture: CL-OIL consolidates below $70.19 after a brief rally from $68.51, as seen on the VT Markets app.
CL-OIL decreased by 0.22%, closing at $69.77 after opening at $69.93. The session saw a slight increase, reaching a high of $70.19 before retracing and closing near the $69.77 level.
The moving averages (MA 5,10,30) indicate consolidation, with short-term MAs crossing below the longer-term moving averages. This suggests weakening momentum and a potential reversal or continuation of the current range-bound price action. The MACD (12,26,9) is currently neutral, with the histogram showing a decrease in momentum, indicating indecision in the market.
Key levels to monitor include $70.19 as immediate resistance and $68.51 as support. A break above resistance could signal the resumption of bullish momentum, while a drop below support might lead to further downside pressure, with the potential to test lower levels.
Outlook and Market Sentiment
With US oil and gas activity seeing slight growth in Q1, but with caution from energy executives, WTI crude continues to show resilience around the $69.70–69.80 range. Traders remain attentive to geopolitical risks and global economic conditions that may influence future price movements.
WTI crude oil remains well-supported, and any further supply disruptions or tariff escalations could push prices higher. However, uncertainty around global demand and production targets may create volatility.
