West Texas Intermediate (WTI) Crude Oil prices bounced back from a one-week low of $58.70, now sitting around $59.20 amid mixed market conditions. Worries about possible US military actions against Iran, which could impact oil supplies, are helping to support these prices. At the same time, expectations that US control of Venezuelan oil will increase global supplies are limiting price hikes. President Trump mentioned that Venezuela might hand over 30 to 50 million barrels of high-quality oil to the US.

Trader Caution Amid Thin Volumes

With thin trading volumes due to a US holiday, traders are careful about making bullish bets on Crude Oil prices. It’s best to wait for solid buying signals to confirm that the recent drop from above $62.00 has ended. WTI Oil is a high-quality crude oil sourced in the US and is priced in US Dollars. The price of WTI is influenced by supply and demand, political instability, and the value of the US Dollar. Weekly inventory reports from API and EIA play a big role in WTI prices by showing changes in supply and demand. OPEC’s production decisions also impact prices; cuts can tighten supply and push prices up, while increases can do the opposite.

Bounce In WTI Crude Prices

West Texas Intermediate crude oil has found some buyers after dropping below $84 last week, and it’s now trading around $85.50. This recovery follows the latest Energy Information Administration (EIA) report, which showed an unexpected rise in crude inventories of 2.1 million barrels. Initially, this news worried the market, but the bounce indicates that traders are currently focused more on supply risks. The main support for prices comes from renewed tensions in the Strait of Hormuz, highlighting the risk of supply disruptions. We experienced similar price stability during the Red Sea shipping issues in 2025, where geopolitical headlines consistently overshadowed negative inventory reports. For traders, this makes puts below the $82 level potentially appealing, as geopolitical concerns remain strong. However, a significant rally above $90 seems unlikely due to increasing global supply and weakening demand. US crude production has stayed surprisingly strong, remaining above 13.2 million barrels per day according to the latest EIA report. In contrast, recent manufacturing data from China showed a contraction at 49.8. This is similar to a few years ago when unexpected supply from outside OPEC+ limited price gains despite turmoil in the Middle East. The tension between supply worries and weak demand creates uncertainty and suggests that prices may trade within a range for now. The mixed signals make clear directional bets risky, as there’s a lack of strong bullish conviction. Therefore, derivative traders should focus on strategies that take advantage of volatility or sideways movements rather than expecting a strong breakout. Create your live VT Markets account and start trading now.

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