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WTI crude oil rebounds above $61 as bulls defend $55 base, upside capped by Iran, OPEC+ supply risk
Saturday, 17 May 2025 01:41 WIB | OIL |Minyak WTI

West Texas Intermediate (WTI) crude oil is trading around $62 on Friday ahead of the weekend, staging a modest rebound after snapping a two-day losing streak. The US Oil found renewed buying interest following a retest of the $55 support zone, where a potential double-bottom structure has formed on the daily chart. While the short-term technical picture has improved, macroeconomic and geopolitical headwinds, especially surrounding rising Organisation of the Petroleum Exporting Countries (OPEC+) output and the potential return of Iranian barrels, continue to weigh on sentiment.

OPEC+ supply strategy and Iran talks cloud the outlook
OPEC+'s recent move to raise production has introduced fresh downside risks to oil markets. Saudi Arabia and key allies are growing less willing to carry the burden of cuts alone, and the group has warned that all voluntary reductions—totaling 2.2 million barrels per day (bpd) could be unwound by Q4 of 2025 if quota discipline doesn't improve.

Meanwhile, renewed hopes of a United States (US) Iran nuclear deal are capping oil's rebound. Diplomats suggest progress has been made, and analysts estimate a deal could bring back as much as 800,000 bpd of Iranian supply. These developments have reintroduced a bearish overhang as the market attempts to stabilize.

Source: Fxstreet

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