Oil markets have been unstable, with WTI crude reaching $65.66, the highest level since August 6. After a $1 drop, the price rebounded, showing a current increase of $1.65. Time spreads are widening, which is a good sign for supply and demand. In global politics, the US is urging Europe to stop importing Russian oil, while India and Russia are strengthening their relationship. In the Middle East, new sanctions have been imposed on tankers transporting Iranian oil. OPEC+ is set to meet this Sunday, and it’s expected they won’t add any new barrels for the first time in a while. If the current highs are surpassed, WTI might return to $70. Last week, WTI crude broke the $70 barrier, confirming the bullish momentum we expected. The market is now stabilizing around $72, supported by tight supply and ongoing geopolitical risks. This price movement indicates that breaking the mid-August highs was an important signal for traders. The recent OPEC+ meeting confirmed our expectations: the organization will keep production steady for another month. This decision keeps supply tight in the near term, as seen in the futures curve, where front-month contracts are trading at a premium, indicating strong immediate demand for physical oil. Last week’s EIA report showed a surprising drop in crude inventories of 5.2 million barrels. Additionally, recent Chinese manufacturing data showed a surprising rise in the PMI to 50.8, indicating that industrial demand is holding up better than anticipated. Global demand indicators are now looking much stronger than they were a month ago. Geopolitical tensions remain high, providing solid support for prices. Efforts to limit Russian oil revenues are ongoing, and there has been stricter enforcement on tankers carrying sanctioned Iranian oil. These factors are continuing to remove barrels from the global market, adding a significant risk premium. Given this situation, we recommend buying out-of-the-money call options to position for potential gains. There’s notable interest in the October $75 and $80 strike prices. Selling put credit spreads around the $68 level is also a high-probability strategy for those looking to earn premiums. This market setup reminds us of 2021, when limited supply and recovering demand led to a sustained rally. If crude can maintain above the $70 support level, our next target is the $77-$80 range in the coming weeks. Traders should stay vigilant for any signs of demand decline, but the current trend clearly leans upward.

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