West Texas Intermediate (WTI) crude oil prices struggle to build on Friday’s gains, encountering fresh selling pressure as the new week begins. Despite a modest rebound from early Asian session lows, WTI currently hovers around $61.65-$61.70 per barrel, down nearly 0.40% for the day.
Key drivers supporting crude include uncertainty over the Iran-US nuclear negotiations and escalating tensions between Estonia and Russia, following Russia’s detention of a Greek-owned oil tanker on Sunday. Adding to the cautious sentiment, US special envoy Steve Witkoff emphasized that any deal with Iran must include a commitment to halt uranium enrichment.
Meanwhile, selling pressure on the US Dollar provides additional support to crude prices, limiting further downside. The market increasingly anticipates further Federal Reserve interest rate cuts this year, and Monday’s surprise downgrade of the US government’s credit rating has triggered renewed USD selling.
However, gains in crude oil appear capped amid mixed Chinese economic data, which dampens the optimism generated by a recently agreed 90-day US-China trade truce. Traders are advised to await stronger follow-through buying before betting on an extension of the recent recovery from the $55.00 level, marking the monthly swing low.
