On Wednesday, oil prices climbed up, recovering from their sharpest two-day dip since 2022. According to Bloomberg, this shift in market sentiment followed a reassessment of geopolitical risks and a new industry report showing a decline in US fuel stockpiles.
Brent crude is now trading close to $67 per barrel, while WTI is holding steady near $66.
The recent truce between Iran and Israel, following the American involvement, has eased concerns over regional fuel supply disruptions, as analysts reported. However, market participants warn that the situation remains fluid.
The rebound also comes after the US green-lighted the resumption of Chinese oil purchases from Iran.
Looking ahead, investors will focus on the global economic outlook and ongoing US tariff negotiations with key trade partners. In addition, the upcoming OPEC+ meeting on July 6 will be closely watched by investors as the alliance is about to discuss potential supply hikes for August.