Oil prices rallied sharply, breaking free from a weeks-long tight trading range. The surge was driven by robust technical support levels that reignited bullish momentum in the energy markets. Brent crude climbed over 3% to trade above $83 a barrel, while West Texas Intermediate (WTI) saw similar gains, crossing $79.
Traders pointed to a mix of technical indicators and increased optimism over demand recovery as key factors behind the move. Analysts highlighted that oil had been testing resistance levels repeatedly, and the breach of these thresholds triggered a wave of buying. This rally comes amid broader market attention on geopolitical tensions and the potential impact on global supply chains.
Despite the upward momentum, some market participants remain cautious, citing concerns over macroeconomic headwinds and the Federal Reserve’s rate policy. However, for now, the market’s focus is on the renewed strength in oil’s price trajectory, supported by resilient demand forecasts and diminishing inventory levels.
