Crude oil commodity prices hit weekly highs, with key support levels at $54.90-$55.00

Geopolitical Tensions Drive Up Energy Premiums

West Texas Intermediate crude oil prices surged to new highs this week, driven by escalating global geopolitical risks. The intensifying situation between Israel and Iran, along with the ongoing Russia-Ukraine conflict, have compounded supply-side concerns, becoming the main force supporting crude oil prices.

U.S. authorities have stepped up interceptions of Venezuelan oil tankers, with the U.S. Coast Guard actively pursuing sanctioned dark fleet vessels. This reflects an increased effort by the U.S. to suppress Venezuela’s evasion of oil sanctions. The move further reinforces market concerns over global supply stability.

Short-term Outlook Faces Demand-side Constraints

Although geopolitical premiums support rising crude oil prices, slowing global economic growth and weakening demand remain significant restraining factors. Long-term oversupply concerns and uncertain end-user demand offset each other, prompting traders to remain cautious before establishing large positions.

Technical and Trading Recommendations

It is worth watching whether WTI can break through the $57.00 level during this rally, but until the price confirms a reliable bottom in the $54.90-$55.00 range, waiting for stronger follow-up buying interest may be more prudent. This zone coincides with the lowest levels since April last month, holding some technical significance. The current mixed fundamental backdrop suggests traders should be cautious when placing directional bets until the market provides clearer signals.