WTI Ends Five-Day Losing Streak as US-Iran Talks Fail to Break Through

WTI crude rebounded on Wednesday, ending a five-session losing streak, and is currently trading near $92.49. Prices had slipped below the $90 mark on Tuesday, recording a fifth consecutive decline and tilting market sentiment toward the bearish side. The direct catalyst for this rebound was the failure of US-Iran talks to achieve a breakthrough, which cooled expectations for a swift return of Iranian crude supply and turned traders' attention back to persistent geopolitical tensions and potential supply risks.

**US-Iran Negotiation Stalemate Delays Supply Return Expectations**

On Tuesday, officials from the US and Iran held a three-hour meeting in New York. Although the talks were described as "productive," the two sides remain deeply divided on core issues, with neither making any concessions, leaving them in a "talk while fighting" standoff. The market had previously bet on progress in the negotiations that would bring Iranian crude back to the market, which had been a major source of pressure behind the five-day losing streak. However, the reality of a fruitless meeting has temporarily dashed those expectations, providing grounds for short covering and a price rebound.

**Inventory and Supply Risks Provide Fundamental Support**

Beyond geopolitical factors, US crude inventory data is also being closely watched by traders. Market sources indicate that global oil inventories are currently approaching a "red line," and the fundamental picture of tight supply has not fundamentally eased. In its latest report, Bank of America raised its year-end target price for Brent crude from $83 per barrel to $95, warning that prices could even break above $150 if supply disruptions persist or oil infrastructure suffers further damage. The bank believes that while alternative transport routes and escort operations in the Strait of Hormuz have alleviated some shortfalls, damaged energy infrastructure and escalating geopolitical risks make a rapid return to normalcy in the oil market highly unlikely.

**Technical Levels in Focus at Key Thresholds**

From a technical perspective, WTI crude's earlier break below the $90 mark and five-day losing streak had raised concerns that the uptrend since July had come to an end. The sustainability of the current rebound hinges on whether prices can effectively reclaim and hold above the $90 level. If the rebound falters and the level is lost again, caution is warranted over a potential shift to a medium-term downtrend, with the $80 level as a possible downside target. Conversely, if geopolitical tensions escalate further, prices could regain upward momentum.