Oil prices are consolidating gains made in recent sessions as traders await fresh catalysts. Market participants are closely monitoring inventory data from the U.S. Energy Information Administration, expected later this week, for clues about supply and demand dynamics. Geopolitical tensions, particularly in the Middle East, also remain a key factor influencing price movements.

Market Sentiment

Sentiment remains cautiously optimistic, supported by expectations of robust global demand, especially from China. However, concerns about a potential economic slowdown in the United States could weigh on prices.

Technical Analysis

From a technical perspective, oil prices are trading within a defined range, suggesting a period of consolidation. Key support levels are being closely watched for potential buying opportunities, while resistance levels could trigger profit-taking activity.

Factors to Watch:

• U.S. Inventory Data
• Geopolitical Risks
• Global Economic Outlook
• OPEC+ Production Decisions

Analysts suggest that the near-term outlook for oil prices will likely depend on the interplay of these factors. Increased volatility is expected as traders react to new information and evolving market conditions.