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West Texas Intermediate (WTI) crude oil rose over 2% on Thursday, reversing a three-day decline as traders engaged in short covering after prices hit a three-month low. The rebound follows concerns over geopolitical tensions in the Strait of Hormuz, a critical global oil transit chokepoint. At $71.50, the price reflects improved short-term sentiment but remains below key psychological levels. The move highlights the market's sensitivity to supply disruptions and geopolitical risks in the Middle East.
For traders, the price action underscores the importance of monitoring regional developments in the Gulf, which could trigger sharp volatility. Energy markets remain vulnerable to shocks from shipping disruptions or military escalations in the Strait of Hormuz. Additionally, the rebound may attract technical buyers near support levels, though sustained gains depend on broader macroeconomic factors like OPEC+ policy decisions.
Looking ahead, investors should track updates on maritime security in the region and potential OPEC+ output adjustments. The U.S. Energy Information Administration’s weekly inventory report and Federal Reserve policy signals will also influence momentum. A break above $73 could signal a shift in the near-term trend, while a retest of $70 remains a critical support level.
