WTI crude oil’s outlook remains neutral to bullish.
Ongoing tensions between the US and Iran near the Strait of Hormuz are helping sustain a geopolitical risk premium, which is offsetting concerns about weak demand.
Although the proposed 20% transit toll was withdrawn, the US naval blockade and retaliatory military actions continue to pose risks to supply chains and support supply-related anxiety.
As a result, these persistent geopolitical tensions have helped create a firm price floor and are maintaining an upward bias in WTI prices.
