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    Crude oil rises $1.58 to $65.59 due to fears over Russian supply and potential OPEC+ decisions

    by VT Markets
    /
    Sep 2, 2025
    Crude oil prices increased by $1.58, reaching $65.59, the highest for WTI since August 7. This rise may be due to worries about Russian oil and the upcoming OPEC+ meeting. Despite the increase in oil prices, there are ongoing concerns about global economic growth. A significant factor could be the removal of Trump’s tariffs, although market changes might push prices back up to $70.

    Market Dynamics and Historical Context

    With WTI crude close to $88, we’re seeing typical market fluctuations. Recent price increases seem more linked to supply issues from OPEC+ and geopolitical tensions than genuine global demand confidence. This situation is reminiscent of the late 2010s when supply news often overshadowed weaker economic indicators. The latest forecast from the U.S. Energy Information Administration suggests that global demand will exceed production by nearly one million barrels per day until the end of the year, supporting a bullish outlook. However, initial jobless claims have risen slightly in the past month, which keeps concerns about demand alive. This uncertainty might make traders cautious about aggressively pursuing this rally. For derivative traders, exercising caution with long futures positions is wise. Buying call options or using bull call spreads could be a better approach to benefit from any potential price spike toward $95 while minimizing risk. This strategy lets traders gain exposure to upside potential while acknowledging the significant risks if growth worries resurface.

    Trading and Risk Management Strategies

    Implied volatility in oil options is rising, making strategies like selling covered calls on energy stocks appealing for income generation. Conversely, traders concerned about a possible downturn from economic slowdowns might want to buy inexpensive out-of-the-money put options to protect their portfolios. Right now, the focus is more on managing risks rather than betting on a clear market direction. Create your live VT Markets account and start trading now.

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