
WTI crude oil outlook: Failure to rally raises downside risk
WTI was given every excuse to rally on Monday but didn’t, with mounting supply risks not enough to prevent a sharp reversal.
Stay in step with market opportunities and get insights, actionable trade ideas and dedicated support.

WTI was given every excuse to rally on Monday but didn’t, with mounting supply risks not enough to prevent a sharp reversal.

Crude oil prices rose more than 3% by mid-day in London, causing stocks and bonds to drop. Prices have rallied after Trump said Iran had been given an opportunity to reach a deal but had failed to take it. But now Trump said an unprecedented economic operation against Iran will be underway, warning of severe economic consequences for countries providing support to Tehran.

Crude oil prices continue to press higher amid the ongoing standoff between the US and Iran. While the softness in US and Chinese data of late does point to some moderation in demand, oil prices remain predominately supply-driven.

Crude oil prices rose more than 2.5% on Tuesday, extending their recent recovery. Reports that commercial vessels transiting the Strait of Hormuz had come under attack, reminded markets that geopolitical risks in the Middle East remain far from being resolved completely. Markets are also wary of a still tight market and the expected buying of oil to fill up emergency stocks.

Crude oil prices tumbled by around $2 from their earlier highs following news of a ceasefire agreement between Hezbollah and Israel, before bouncing back slightly to still hold in the positive territory at the time of writing.

Oil prices are rising once more as Trump warns Iran has to pay the price for taking too long to negotiate. Despite jawboning the oil market lower earlier this week, it looks like the situation is deteriorating unfortunately and oil prices could start climbing towards $100 once again.

And just like that, oil prices gave up the entire near-6% weekly gains by afternoon trading in London. Crude oil traders had been pricing in disruptions to Iranian oil in recent days amid concerns about military action in the country by the US. But it looks like Trump has decided against that - at least for now - and traders have accordingly reduced the risk premium priced in oil.

Oil prices remain on the backfoot. After initially spiking higher, crude oil turned and closed lower on Monday, as traders reacted to threats of 'very severe' tariffs against Russia. WTI was still holding above the $65 barrel, so it wasn’t all doom and gloom. Still, the crude oil outlook is far from bullish, but we continue to expect more side-ways chop in the coming weeks.

Despite the OPEC's urgency to bring back more supplies online, oil prices have stopped falling further since that sharp de-escalation in the conflict between Israel and Iran a couple of weeks ago. What’s driving prices and what’s in for the crude oil outlook?

Crude oil forecast shifts as Israel-Iran ceasefire eases supply fears. Key support levels now in focus following sharp selloff as market's focus returns to fundamentals and away from geopolitics.
The uranium market has been depressed for over a decade and nuclear power has suffered an image problem – but is that changing? We explain why uranium and nuclear power is back in fashion and outline the top ways to gain exposure.
Natural gas is one of the most widely traded commodities on the market due to its use as a global source of energy. Find out everything you need to know about natural gas and how to trade it.