Oil prices rebound after a 5% drop, supported by short-covering and easing geopolitical tensions.
West Texas Intermediate crude rose 1.56% to $75.50 on Wednesday, recovering from a more than 5% decline in the prior session. The gain followed a technical rebound as traders covered short positions amid oversold conditions.
The previous drop had pushed prices to multi-week lows, driven by demand concerns and broader market volatility. Diplomatic optimism over potential ceasefire talks in key oil-producing regions also contributed to the uptick.
Market reaction remained cautious, with investors monitoring further developments in supply dynamics and geopolitical risks.