West Texas Intermediate (WTI) crude futures for July delivery surged 4% during Wednesday’s trading session, reaching $74.35 per barrel. This significant intraday movement reflects growing volatility in energy markets as traders adjust positions ahead of the contract’s expiration.
The price jump comes amid mixed signals from global oil markets, with concerns about summer demand strength offsetting recent bearish inventory reports. Market participants appear to be pricing in tighter physical market conditions, particularly with the approaching peak driving season in the Northern Hemisphere.
Technical Factors Amplify Price Movement
Analysts note the rally was exacerbated by technical trading factors, including short covering and options-related activity as the July contract enters its final days. The move follows several weeks of range-bound trading that had seen WTI prices consolidate between 72 per barrel.
The energy complex remains sensitive to geopolitical developments and OPEC+ production policy signals, with traders closely monitoring inventory data and refining activity indicators. The volatility underscores the current uncertainty in crude markets, where bullish demand expectations continue to compete with concerns about economic growth prospects. Market participants will watch for sustainability of this price move as the August contract becomes the new front-month futures benchmark.
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