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West Texas Intermediate (WTI) crude oil prices retreated by 3.70% on Thursday, trading at $101.45, following three consecutive days of gains. Despite the pullback, prices remain above the $100 psychological threshold, indicating persistent market pressures. The decline comes amid heightened geopolitical tensions in the Strait of Hormuz, a critical global oil transit chokepoint, which continue to weigh on supply risk perceptions.
The price action reflects a fragile balance between supply constraints and demand concerns. Traders are closely monitoring the Strait of Hormuz situation, as any disruption there could significantly impact global oil flows. The $100 level remains a key technical and psychological benchmark for market participants, with a breakdown below this level likely to trigger further bearish momentum.
For Gulf investors, the volatility underscores the region's economic sensitivity to oil price fluctuations. Key watchpoints include OPEC+ policy decisions, US shale production trends, and potential escalations in Middle East geopolitical tensions. The market's ability to hold above $100 will be crucial in determining near-term direction.
