WTI Crude Tops $78 as Middle East Tensions Escalate
US crude futures rose for a third straight session as supply risks build and OPEC+ holds the line on output cuts.
Today's Action
The June WTI contract is trading at $78.42 per barrel, up 0.65% and notching its third consecutive gain. Brent is back above $82 per barrel.
Supportive Drivers
- Geopolitics: Peace talks in the region have stalled, raising the risk premium on Persian Gulf supply.
- OPEC+ voluntary cuts continue: Saudi Arabia and Russia maintain their 2.2 million barrel-per-day cut commitment through Q2.
- US inventories drawdown: EIA reported a 4.1 million barrel drop in commercial crude stocks last week, beating estimates.
- US driving season: Gasoline demand typically rises into the summer.
Technical Read
WTI just broke out of a three-week consolidation between $76 and $78:
- Near-term resistance: $79.80
- Strong resistance: $82.50 (April high)
- Support: $76.80 (breakout zone)
The 50- and 200-day moving averages are converging toward a "Golden Cross" — a constructive medium-term signal.
Risks
A weaker-than-expected China data release could weigh on the global demand outlook. Traders should also watch the weekly EIA inventory report on Wednesday.
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Views expressed are the author's own and do not constitute investment advice.
