Traders eye next week’s inflation report for Fed policy clues after crude stabilizes near key support levels.
Oil prices have stabilized above $68 after briefly dipping below pre-war levels, with traders now focused on next week’s US CPI data. The unwinding of geopolitical premiums appears complete, leaving macroeconomic factors as the primary driver for price movements.
Recent consolidation follows a period of rangebound trading near the $68 support zone, with buyers defending the level ahead of potential Fed policy shifts. Analysts note that softer inflation could limit downside risks, while an upside surprise may reignite hawkish rate expectations and pressure crude.
Technical analysis shows buyers stepping in at support, targeting a rally toward $78, while sellers await a break below $68 to push prices toward $55. The Strait of Hormuz remains a wildcard, though no immediate supply disruptions have materialized.