WTI Rebounds from Multi-Week Low, Nearing Mid-$67 Range

West Texas Intermediate (WTI) crude oil shows signs of resilience early this week, recovering from a three-week low touched on Friday. The commodity trades just below the mid-$67.00 range, posting a modest 0.60% gain for the day and snapping a three-day losing streak.

OPEC+ Supply Moves and Geopolitical Risks Provide Support
OPEC+ recently decided to delay planned supply increases by three months, extending the unwinding of production cuts until the end of 2026. This move, coupled with heightened geopolitical risks stemming from the Russia-Ukraine conflict and the overthrow of Syria’s President Bashar al-Assad, has contributed to a geopolitical risk premium, supporting crude oil prices.

US Economic Resilience and Demand Prospects
Expectations of economic growth in the U.S., bolstered by hopes that President-elect Donald Trump’s expansionary policies will drive fuel demand, also lend support to WTI prices. However, concerns over slowing demand from China, highlighted by Saudi Arabia’s recent price cuts for Asian buyers, underscore worries about the global demand outlook.

Potential Supply Glut Remains a Key Constraint
Rising U.S. production could cap significant price increases. The latest Baker Hughes report revealed that U.S. oil and gas rig counts have reached their highest levels since mid-September, pointing to a potential increase in supply from the world’s largest crude producer.

Outlook: A Cautious Path Forward
While WTI has bounced back from its recent lows, concerns about demand dynamics and supply surpluses could limit further gains. Traders may need to see sustained buying interest and clearer signals before committing to expectations of a meaningful upside for crude oil prices.