WTI Seems Vulnerable Near $61.75, One-Week Low Amid US-Iran De-Escalation
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West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on the previous day's modest bounce from the $61.20 area, or a one-week trough, and attract some sellers for the second straight day on Tuesday. The commodity currently trades around the $61.75 region, down 0.40% for the day, and seems vulnerable to slide further.
Signs of de-escalation of tensions between the US and Iran, over the latter's nuclear programme, ease market concerns about a military confrontation and supply disruption fears. In fact, officials from both countries told Reuters that Iran and the US will resume nuclear talks on Friday. This, in turn, led to a bearish gap opening on Monday and continues to exert some downward pressure on Crude Oil prices.
Meanwhile, forecasts of milder weather in the US turn out to be another bearish development for the black liquid amid the recent US Dollar (USD) recovery from a four-year low. US President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve (Fed) chair tempered hopes for more aggressive rate cuts and provided a goodish lift to the buck, which undermines the USD-denominated commodity.
Moreover, a surge in Venezuelan oil exports to approximately 800K barrels per day in January, from 498K barrels per day in the previous month, adds to worries about a major supply glut. This, in turn, validates the near-term negative outlook for Crude Oil prices and backs the case for a further retracement slide from its highest level since August 2025, around the $66.25 area, touched last week.
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