Oil Rises After Plunge
WTI crude futures rose toward $68 per barrel on Tuesday, likely rebounding technically after a 6% plunge in the previous session, its largest daily loss in two years. The decline followed reports that Israel's retaliatory strike targeted military sites across Iran on Saturday, avoiding oil and nuclear facilities.
Risk premiums eased further as Israeli Prime Minister Benjamin Netanyahu expressed openness to a brief truce in Gaza in exchange for the release of a limited number of hostages. With the easing of Middle East tensions, market focus has shifted back to weak fundamentals, particularly sluggish Chinese demand growth and the anticipated OPEC output increase. Traders will also watch key US data on growth and employment this week for insights into monetary policy, along with implications of the upcoming US election.
Source: Trading Economics