WTI crude traded in a narrow $62.00 to $63.00 range on Monday, with moves above $63.00 limited and support near $62.00 holding. Prices were about 4% below last week\u2019s $65.65 high.<\/p>\n
Markets waited for updates on US-Iran nuclear talks, while trading was quiet due to Lunar New Year closures in many Asian markets and the US President\u2019s Day bank holiday. Iranian officials said energy, mining, and aircraft deals were being discussed.<\/p>\n
US Secretary of State Marco Rubio said the US was seeking a negotiated outcome and did not rule out military action. The US sent a second aircraft carrier to the Middle East, and reports said President Trump backed Israeli attacks on Iran\u2019s missile programme if talks fail.<\/p>\n
Rumours that OPEC+ may restart output increases from April also weighed on prices. The move would be in response to expectations of higher global demand during the western summer.<\/p>\n
WTI stands for West Texas Intermediate, a US-sourced \u201clight\u201d and \u201csweet\u201d crude distributed via the Cushing hub. Its price is driven by supply and demand, geopolitical risks, OPEC decisions, the US Dollar, and weekly inventory data from the API (Tuesday) and the EIA (Wednesday), which align within 1% about 75% of the time.<\/p>\n
We are seeing a familiar pattern in WTI crude, with prices stuck in a tight range that is capped by geopolitical uncertainty. Looking back at the situation in 2025, we saw similar price action when markets were awaiting clear signals on major supply-side events. The outcome of the US-Iran negotiations remains the primary catalyst for a breakout from this current consolidation.<\/p>\n
Recent data from the Energy Information Administration (EIA) adds a layer of complexity to this picture. Last week\u2019s report, for the week ending February 13, 2026, showed a surprise inventory draw of 2.1 million barrels, against expectations of a small build. This tightening of physical supply, combined with global demand figures for January 2026 showing a 1.5% increase year-over-year, is providing a floor for prices.<\/p>\n
For derivative traders, this environment suggests that implied volatility is likely underpriced ahead of a major news event. A long straddle, buying both a call and a put option with the same strike price and expiration, could be a prudent strategy. This position profits from a significant price move in either direction, whether talks succeed and prices fall, or they fail and prices spike.<\/p>\n
We also must consider that OPEC+ recently chose to hold production levels steady at their late January meeting, citing balanced market risks. This cautious stance contrasts with periods in 2025 when the group was more willing to increase output to cool prices. Their current inaction suggests they are also waiting for clarity on Iran before making their next move.<\/p>\n
Therefore, the immediate focus should be on options that expire after the expected conclusion of the nuclear talks. Any news hinting at a breakthrough could be a signal to prepare for downside pressure below the $62.00 support level. Conversely, signs of a breakdown in negotiations would make calls targeting the old resistance level near $65.65 look attractive.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" WTI ranged $62\u2013$63 as US-Iran talks, holiday-thinned trade and OPEC+ output hike rumors pressured prices.<\/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-41984","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\/41984","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=41984"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/41984\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=41984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=41984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=41984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}