Crude oil settled higher by $1.58, reaching $65.59, marking the highest for WTI since 7 August. This rise could be influenced by concerns over Russian oil and the upcoming OPEC+ decision.<\/p>\n
Persistent concerns surround global economic growth, despite the boost in oil prices. A potential catalyst for oil could be the permanent blockage of Trump\u2019s tariffs, although market fluctuations might cause prices to rebound to $70.<\/p>\n
With WTI crude holding near $88, we’re seeing a familiar push and pull in the market. The recent strength seems tied more to fresh supply anxieties from OPEC+ and ongoing geopolitical tensions than any real confidence in global demand. This feels a lot like situations we saw back in the late 2010s, where supply headlines often overshadowed weakening economic data.<\/p>\n
The U.S. Energy Information Administration’s latest forecast projects that global consumption will outpace production by nearly a million barrels per day through the end of the year, which supports the bulls. However, we’ve also seen initial jobless claims tick up slightly over the past month, a statistic that keeps demand-side fears alive. This underlying uncertainty is why traders might be hesitant to chase this rally too aggressively.<\/p>\n
For derivative traders, this environment suggests caution against holding outright long futures positions. Buying call options or implementing bull call spreads could be a smarter way to participate in any potential spike towards $95 without taking on unlimited risk. This strategy allows for upside exposure while acknowledging the significant downside risk if growth concerns suddenly take center stage.<\/p>\n
Implied volatility in oil options has been climbing, making premium selling strategies like covered calls on energy equities attractive for generating income. On the other hand, traders worried about a sharp downturn fueled by a slowdown could consider buying cheap, out-of-the-money put options as a portfolio hedge. The current setup is less about a clear direction and more about managing the potential for a sudden move either way.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Crude oil climbs to $65.59, highest since August, amid Russian supply concerns and OPEC+ decision.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30053","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=30053"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30053\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}