Crude Oil Strengthens Amid Dollar Weakness
West Texas Intermediate (WTI) crude oil prices advanced on Wednesday morning during the European session, reaching $58.67 per barrel—up from Tuesday’s close at $58.51. This upward move reflects signs of improving global demand and easing supply concerns across energy markets.
Simultaneously, Brent crude also posted gains, climbing from $62.35 on Tuesday to $62.49 in today’s trading. The bullish momentum in both benchmarks signals a broadly positive tone in the energy sector, driven by fundamental factors and policy expectations.
Analysts point to a modest recovery in global demand outlook—particularly from China and the United States—as a major factor supporting oil prices. Additionally, weekly reports indicating declining crude inventories in the United States have added further upward pressure.
Meanwhile, markets remain cautious about potential supply disruptions from major producers in the Middle East and North Africa, especially amid ongoing geopolitical tensions and the possibility of voluntary production cuts from OPEC+ members.
At the same time, expectations for interest rate cuts by the United States Federal Reserve in the upcoming meeting have weakened the US Dollar, lending support to dollar-denominated commodities such as oil. A softer dollar typically enhances the appeal of these assets for international buyers.
On the daily chart, WTI crude has stabilized around the $58 level and is showing signs of a bullish reversal. A breakout above the $58.70 resistance could pave the way toward the psychological $60 mark. The Relative Strength Index (RSI) remains neutral, but a move above 50 could trigger a bullish signal.
Brent crude, meanwhile, is holding firm above the $62.50 level. A sustained move higher could target resistance at $63.20. If this level is breached, the next upside objective may be the $64 region, aligning with previous highs recorded in November.
Traders are now awaiting the release of crude oil inventory data from the United States Energy Information Administration (EIA), which could significantly impact price volatility. Additionally, the ADP employment report and the United States Services PMI are expected to influence monetary policy expectations and, by extension, oil price dynamics.