OIL gains 1.3% above $70 fuelled by US - Iran tensions and Russia's remarks 📈

Oil prices rebounded slightly today, gaining nearly 1.5% after reaching a local low of $68 per barrel. This week, OPEC+ confirmed that it will gradually return 2.2 million barrels per day to the market, starting in April. However, the market is reacting to two major factors driving the rebound.

• First, traders are betting on a potential supply disruption from Iran due to U.S. sanctions aimed at restricting Iranian oil export and economy.
• Additionally, Russia's Deputy Prime Minister Alexander Novak stated that OPEC+ may reconsider its planned output increase after April if necessary.
• Furthermore, WTI crude may be particularly vulnerable to U.S.-Canada trade tensions, as major Canadian pipelines have reported lower oil transport volumes to U.S. refineries, potentially tightening supply in the U.S. market.
• At the same time, a key driver of falling oil prices has been a weaker U.S. dollar, mixed economic signals from China and the EU, and a decline in U.S. macroeconomic indicators, which suggest weakening consumption and sentiment.

OIL charts (D1 interval)

Oil rebounds above $70 level today, after re-testing recent local lows. During last 5 sessions, we saw a rising selling volume, which triggered the sell-off below $70 zone.

Source: xStation5

Source: xStation5