Insights 
VT 
WTI crude oil prices saw a decrease after reaching $75.54, influenced by easing geopolitical tensions. Diplomatic talks between Iran and EU diplomats in Geneva helped reduce concerns over the Strait of Hormuz, a crucial transit point for oil shipments.
The WTI crude oil was trading around $73.80 per barrel. President Trump delayed a decision on US military involvement, focusing market attention back on supply fundamentals.
Us Inventory Data
US inventory data added bullish pressure, with a draw of 10.13 million barrels reported by the API and a larger 11.47 million barrels decrease noted by the EIA. The reduction in inventories suggests tighter supply conditions.
Technically, WTI remains above key Simple Moving Averages, with initial support seen at $72.00 and resistance at $75.54. The Relative Strength Index indicates slightly less overbought conditions.
WTI oil, sourced and distributed in the US, is a benchmark in the oil market. Influenced by factors such as global growth, political instability, and OPEC decisions, its price is affected by supply and demand.
Inventory reports by API and EIA impact WTI oil prices. A drop in inventories indicates increased demand, potentially raising prices, while higher inventories suggest the opposite.
Much of the recent movement in oil prices appears to have shifted from reactive geopolitical headlines to a more fundamental consideration of supply and demand. The easing of tensions in strategic maritime routes—particularly near the Strait of Hormuz—came on the back of diplomatic dialogue involving Iranian officials and EU representatives in Geneva. This diplomatic momentum opened a temporary window of calm, which, in turn, allowed market sentiment to pivot away from immediate disruption risks.
Prices that previously touched $75.54 slipped slightly, with WTI hovering close to $73.80 per barrel in the short term. The decision by the US President to pause any military commitment has nudged sentiment back toward assessing inventory levels and production metrics rather than speculating on near-term conflict escalation. While such restraint might not silence all risk factors, for the time being it has lessened urgency in risk premiums often baked into crude.
Recent Inventory Reports
One thing is clear—US inventory figures have been revealing. A draw of over 11 million barrels, released by the Energy Information Administration, exceeded the draw forecasted by the American Petroleum Institute, which was already substantial. When withdrawals outpace expectations, this almost always pushes us to reassess balance tables, especially when taken in tandem with production capacities and refining runs.
We’re still seeing technical levels hold. With the current price trading above its major moving averages, there’s technical affirmation that bullish tendencies haven’t entirely dissipated. A support zone near $72 offers an initial guardrail, while the $75.54 mark continues to serve as the most immediate ceiling seen during prior upsides. For anyone tracking momentum metrics, the RSI is not as overheated as before, suggesting there’s still breathing room if fresh buying interest steps in.
From our side, it’s worth watching how the commitment from market participants adjusts with each inventory cycle. Large draws, especially like those noted above 10 million barrels, push us to consider how quickly demand might be outpacing near-term supply, or whether shipping disruptions or refinery throughput are playing a larger role than first anticipated.
As derivative strategies are adjusted in this context, the key lies in aligning technical levels with anticipated inventory patterns. When we see back-to-back draws of this scale, options volatility can spike ahead of data releases, offering potential entry or hedge points. Moreover, spot and futures decoupling over these intervals often surface, leading to adjustments on roll strategies, particularly around expiry periods.
Spotting the direction of inventories matters more this month than any reaction to diplomatic narratives. Watching margin requirements, roll yields, and implied volatility levels in the options market—especially how they cluster around the $72 and $75 thresholds—will be key in understanding where momentum could swing next. Traders would do well to integrate EIA and API publications into fixed calendar models and monitor open interest changes for directional cues.
