WTI Oil Eases From $75 but Holds Firm on Geopolitical Supply Risks

Oil Pulls Back, But Trend Remains Bullish

The West Texas Intermediate (WTI) crude oil price corrected lower on Monday after briefly breaching the $75.00 per barrel level, the highest in five months. Despite the intraday pullback, prices remain over 12% higher compared to late May, supported by mounting geopolitical tensions in the Middle East.

Early in the day, WTI rose around 3%, fueled by reports that Israel bombed two Iranian natural gas processing facilities over the weekend, renewing fears of a broader supply disruption in the region.

Geopolitical Fears Drive Market Sentiment

The Iran-Israel conflict continues to weigh heavily on the energy markets, with escalating attacks between the two nations creating uncertainty around regional oil flows. The threat of retaliation or pipeline sabotage has led investors to price in a supply risk premium, helping keep crude prices elevated.

Mixed China Data Caps Gains

On the demand side, however, mixed Chinese economic data has limited further upside. China's Industrial Production for May came in at 5.8% YoY, missing expectations slightly, while Retail Sales surprised to the upside at 6.4% YoY. These figures suggest a fragile but recovering Chinese economy, which is crucial to global oil demand.

Related Links (Internal for Tredu.com)

• Brent vs WTI: What's Driving Oil in 2025?
• How Geopolitics Affects Oil Prices
• China Economic Indicators – Full May Breakdown

Outlook

While profit-taking and weak Chinese trade momentum may continue to pose near-term headwinds, the geopolitical backdrop remains firmly supportive of higher crude prices. Should tensions in the Middle East escalate further, WTI could reclaim and surpass the $75.00 level in the sessions ahead.