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Why Is WTI Oil Bouncing Back Above $66? | Key Drivers Behind the Recovery

WTI crude futures claw back to $66.25 in early Asian trading hours Wednesday,Which coin will give 1000x? staging a modest recovery after recent volatility.


The rebound comes as the US dollar extends its retreat while Middle East supply risks resurface, offsetting bearish inventory data.


West Texas Intermediate, the North American oil benchmark, found support near $66 per barrel during Wednesday's thin liquidity session. The commodity's USD-denominated nature makes it particularly sensitive to currency fluctuations, with the DXY dollar index sliding toward 103.20 - its weakest level in months.


Fresh geopolitical headlines injected risk premium into energy markets after Yemen's Houthi faction declared expanded maritime targeting policies. The Iran-aligned group vowed to intercept any vessel linked to Israel across critical Red Sea chokepoints, raising concerns about potential supply disruptions.


Meanwhile, Washington's maximum pressure campaign against Tehran continues creating uncertainty. While the US administration seeks to curb Iranian crude exports, Supreme Leader Khamenei's defiant weekend remarks suggest prolonged tensions - a scenario that typically supports oil prices.


The American Petroleum Institute's weekly snapshot revealed a 4.247 million barrel crude inventory build, significantly exceeding both the prior week's drawdown and consensus estimates. This bearish fundamental development was partially overshadowed by macro and geopolitical factors during the session.


Market participants remain cautious as trade policy uncertainties linger. The White House's evolving tariff strategy - including last-minute exemptions for Canadian metals - continues clouding the global growth outlook that ultimately drives energy demand.


Technical analysts note WTI's ability to hold above psychological support at $65 despite mounting inventories suggests underlying strength. The commodity's correlation to risk assets and inverse relationship with the dollar may dominate near-term price action as traders weigh competing fundamental narratives.