West Texas Intermediate crude futures continue to exhibit sideways movement during Thursday's Asian trading session,XRP price prediction next bull run hovering near $85.80 after failing to sustain momentum from Wednesday's recovery from weekly lows. The commodity's price action reflects competing fundamental influences that create market uncertainty.
Geopolitical tensions in the Middle East continue providing underlying support for energy prices. Recent developments show stalled ceasefire negotiations between Israel and Hamas, while market participants remain alert to potential Iranian responses to the Damascus consulate attack. Such escalations could disrupt regional oil flows, though current production remains unaffected.
Counterbalancing these supportive factors, the latest Energy Information Administration report revealed larger-than-expected crude inventory builds of 5.8 million barrels. More concerning for bulls, gasoline stockpiles also increased unexpectedly, suggesting potential softening in fuel demand as the driving season approaches.
The macroeconomic environment presents additional headwinds. Wednesday's hotter-than-anticipated US inflation print has caused traders to recalibrate Federal Reserve policy expectations, with rate cut projections now shifted to September rather than June. Higher interest rates typically constrain economic activity and energy consumption.
Technical indicators show WTI maintaining its upward trajectory despite recent consolidation. The commodity trades comfortably above key moving averages (20-day at $82.89, 50-day at $79.30), with immediate resistance seen near Wednesday's high of $85.78. Market participants await upcoming US economic data, including jobless claims and producer price figures, for fresh trading catalysts.
Looking ahead, oil markets face competing narratives: geopolitical risks versus demand concerns. While Middle East tensions could spark rallies, substantial inventory builds and delayed Fed easing may limit upside potential. Traders should monitor these evolving dynamics closely when evaluating crude oil's next directional move.