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West Texas Intermediate (WTI) crude oil futures rose 2% to $93.70 during Thursday's European session, surpassing the 20-day exponential moving average (EMA). The price rebound follows ongoing supply concerns due to the closure of the Strait of Hormuz, a critical global oil transit chokepoint. Analysts attribute the upward movement to reduced liquidity in the region and geopolitical tensions affecting regional exports.
The surge in WTI prices highlights the sensitivity of global energy markets to geopolitical disruptions. Traders are monitoring whether the Hormuz closure will persist, as prolonged blockades could trigger further volatility. The 20-day EMA crossing is also significant for technical traders, signaling potential bullish momentum. However, the market remains cautious about broader economic slowdowns that might temper demand.
For Gulf investors, the Hormuz situation underscores the region's strategic importance in global energy flows. Producers in Saudi Arabia and the UAE may face pressure to adjust output strategies. Key indicators to watch include OPEC+ policy updates and U.S. crude inventory reports. A sustained break above $95 could reinforce bullish sentiment, while a retest of the 20-day EMA might test market resolve.
