WTI recovers part of its losses, caught between technical rebound, diplomatic optimism
West Texas Intermediate (WTI) trades around $75.50 on Wednesday at the time of writing, up 1.56% on the day, as investors take advantage of a technical rebound following the more than 5% decline recorded in the previous day.
West Texas Intermediate (WTI) oil prices rebounded by 1.56% on Wednesday, reaching $75.50, after falling more than 5% the previous day. However, the recovery is constrained by ongoing diplomatic efforts between the United States and Iran. The talks, backed by Qatari officials who reported an interim agreement, aim to reopen the Strait of Hormuz and alleviate concerns over potential global oil supply disruptions.
Meanwhile, Saudi Arabia and Iran are holding indirect discussions to avert further conflict in the Red Sea. Despite these diplomatic gains, traders remain cautious, monitoring market fundamentals, including a surprising increase in US Crude Oil inventories, which could influence the upcoming Energy Information Administration report.
The technical analysis indicates that WTI is in a corrective phase rather than a trend reversal, with price currently trading at $75.67, just below key moving averages. Short-term resistance stands at $77.40, while the next key support is at $73.51.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
