Crude oil commodities hit weekly highs amid geopolitical risks, with traders focusing on the $57.00 level.

West Texas Intermediate crude oil continued its upward trend this Monday, driven by escalating global geopolitical tensions, which continue to attract buying interest. As a major global energy commodity, crude oil prices are highly sensitive to international political developments, and recent risk events have further intensified market supply concerns.

Over the weekend, the US government took action to seize Venezuelan oil tankers, while the Coast Guard is actively pursuing a vessel associated with the dark fleet that is under international sanctions. This vessel is a key transportation tool for Venezuela to evade sanctions. These series of US actions have directly impacted market expectations for medium-term supply.

The Middle East situation also remains a core factor driving this commodity’s price. Tensions between Israel and Iran have escalated, coupled with the ongoing Russia-Ukraine conflict, jointly building geopolitical risk premiums. The Israeli Prime Minister stated that officials are assessing Iran’s progress in expanding ballistic missile capabilities and are preparing to report potential military responses to the US. Meanwhile, a senior Russian diplomatic advisor indicated that modifications to the US peace plan by Europe and Ukraine have not improved prospects, implying a risk of prolonged conflict.

Although geopolitical factors provide upward support, uncertainties regarding global demand outlook are becoming a restraining factor for further price increases. Persistent expectations of global oversupply and concerns over economic growth slowdown interact to limit traders’ willingness to establish large positions.

From a technical perspective, traders should pay attention to resistance at the $57.00 level. Short-term support is concentrated in the $55.00 to $54.90 range, close to the lows since April. In the context of a complex global fundamental background with intertwined bullish and bearish factors, it is prudent to confirm the validity of these key support and resistance levels carefully, and to wait for strong follow-up signals before taking action may be more cautious.