Key Takeaways

-WTI retreated toward $95.34 after ceasefire reports eased geopolitical concerns.

-US crude inventories fell 8.0 million barrels, stronger than the expected 4.0 million.

-Technical resistance sits at 95.70–95.87; support is at 94.72–94.30.

-Oil remains rangebound, balancing supply tightness against easing geopolitical risk.

-Traders should watch US-Iran negotiations, inventory data, and Strait of Hormuz developments.

WTI crude edged lower to trade near $95.34 after earlier gains were trimmed. Traders responded to ceasefire reports between Israel and Lebanon, which eased the immediate Middle East risk premium. Brent also moved lower toward $96.92. The pullback contrasts with the previous session’s roughly 2% rally prompted by heightened regional tensions near the Strait of Hormuz.

Supply Data and Inventory Impact

US crude inventories fell sharply by 8.0 million barrels to 433.7 million barrels, exceeding the expected 4.0 million-barrel draw. Despite optimism from the ceasefire, supply remains tight. Traders now balance the easing geopolitical risk against inventory pressures ahead of peak summer demand.

Macro Drivers

Geopolitical developments remain the key catalyst, with US-Iran negotiations and Strait of Hormuz risk in focus. Meanwhile, the strong inventory draw provides a stabilizing factor. Investors should watch ceasefire updates, inventory figures, and broader demand signals, including IEA warnings about global stock levels.

Technical Setup

WTI is trading near short-term moving averages: MA5 at 95.299, MA10 at 95.221, and MA20 at 95.098. This cluster signals consolidation, with resistance at 95.70 and support at 94.72. A break above resistance could reignite buying, while a drop below support may target 94.30 and lower risk zones. The market is effectively coiling, waiting for a decisive breakout or breakdown.

Market Outlook

Oil remains caught between easing geopolitical fears and constrained supply. Expect continued volatility, with price likely oscillating between resistance at 95.70 and support at 94.72 until new catalysts emerge.

Read more on how WTI crude is responding to geopolitical shifts and US inventory data in this article.