Snapshot: WTI crude is trading at $92.54, up 1.67%, rebounding from recent lows. The move higher is predicated on dip-buying and a reassessment of the demand outlook, but the relatively high speculator positioning creates risk into any move lower. Eyes now turn to the 10:00 ET CB Consumer Confidence release.
- Watch for a break above the day’s high of $93.60, which could signal further upside momentum.
- Geopolitical tensions in the Middle East, specifically regarding US-Iran relations and potential disruptions to oil supply, remain a key risk and potential volatility driver.
Bias into NY: Bullish above $93.00, with the caveat that speculator positioning is extended, any miss of the consumer confidence print could easily send this back below $92.00 if traders start to bail on long positions.