WTI crude oil has spent the past three trading sessions in a narrow range just below its recent swing highs, with daily volatility contracting by more than 30% compared to last month. Technical studies on the four-hour chart show that the 50-period simple moving average is providing dynamic support while the relative strength index is oscillating near neutral territory. Market participants note that option open interest at the strike closest to the current level has risen by 18% over the past week, suggesting increased hedging activity around this threshold.

Data released by industry group API indicated a 4.8 million-barrel draw in domestic crude stocks last Tuesday, outpacing the five-year seasonal average by 1.2 million barrels. The Energy Information Administration followed with its weekly report showing a 5.2 million-barrel decrease in inventories, marking the third consecutive weekly decline. Refinery utilization climbed to 91.3% of capacity, the highest reading since late autumn, while gasoline and distillate stocks both fell by roughly 2 million barrels each, underpinning the broader supply tightening narrative.

Trade in WTI has been influenced by a recent uptick in risk aversion as reports emerged of stalled diplomatic talks between Washington and a major Middle Eastern producer. The implied volatility for WTI options over the next month has jumped from 22% to 28% in just four sessions, reflecting heightened uncertainty. Meanwhile, shipping data from S&P Global Platts shows that tanker freight rates in the key Arabian Gulf–Asia route have risen by nearly 15% since late December, signaling growing concern over potential supply disruptions.