Oil & Gas

Oil prices are on the rise due to increasing geopolitical tensions and a bullish trend in Texas Intermediate (WTI) crude oil, closely following Brent crude's movements. Escalating unrest in the Middle East, particularly involving Israel and Iran, has led to uncertainties in oil supply, boosting global oil prices and contributing to the upward movement of WTI prices. Economic factors, including the U.S. Federal Reserve's policies and global economic health, also play a significant role in shaping oil prices. Strong economic recovery can increase oil demand and support higher prices, while economic slowdowns or policy changes can lead to lower prices.

Recent reports showing a rise in U.S. crude oil stocks, contrary to expectations of a decrease, along with decreases in gasoline and distillate inventories, have influenced market trends. Factors such as high nationwide gasoline prices, stable OPEC+ production, and refinery outages in the U.S. are contributing to these trends. Despite these factors, the oil market is facing a supply shortage due to OPEC+ production cuts and reduced investment in oil exploration, while demand is resurging as global economies recover from the pandemic.

Technically, the main trend in the oil market is upward, with the market targeting $88.31. The short-term outlook remains bullish, supported by geopolitical tensions and economic factors. However, traders should stay alert to potential changes in market direction, which could be influenced by geopolitical developments or economic policy changes.