WTI crude oil is poised for a technical recovery after weeks of declines, according to FOREX.com analyst Fawad Razaqzada. The daily chart shows momentum indicators stretched to the downside, creating conditions for a corrective bounce. Front-month futures rose 0.5% to $74.21 per barrel. The analyst identifies major resistance around $76.10 per barrel, a level that previously provided support earlier this year.

Oil prices are finding support from geopolitical tensions in the Middle East. Concerns mount over the sustainability of oil tanker traffic through the Strait of Hormuz, through which one-fifth of global oil flows. Recent surges in tanker transits may not continue given Iranian warnings about mandatory insurance policies. Currently free insurance could become costly, adding uncertainty to global supply chains.

ANZ Research analysts highlight these supply concerns as contributing factors to the price rebound. The market is responding to both technical factors and fundamental supply risks. WTI crude oil futures gained 0.4% in the second report, trading at $74.13 per barrel.

The convergence of technical oversold conditions and geopolitical supply risks creates a compelling near-term setup for oil markets. However, the sustainability of any rebound depends heavily on whether tanker traffic through the Strait of Hormuz remains disrupted.