WTI crude climbs 2.7% to $70.43 as supply fears drive buying

WTI crude rose 2.7% to $70.43 a barrel on July 7, its highest close of the session after a volatile intraday swing that spanned more than $2 a barrel.

The 3.12% intraday amplitude reflected the session's wide trading band, according to exchange data. WTI crude opened at $68.58, matched that level as the session low, then rallied to a high of $70.72 before settling at $70.43. The close at $70.43 marked a $1.85 gain from the opening price, with the high of $70.72 representing the session's peak buying level.

Volume reached 163,254 contracts during the session, reflecting active market participation. The move from the open to the high of $70.72 represented a potential intraday gain of $2.14 a barrel before prices settled back by 29 cents from the high. The volume level provides context for the conviction behind the move, with higher volume supporting the validity of the price breakout.

The session's price action showed early selling pressure giving way to sustained buying through the remainder of the day. The open at $68.58 matched the low, indicating that sellers were unable to push prices below the opening level. From there, crude rallied steadily to the $70.72 high before closing near the top of the range at $70.43. The close near the session high suggested buying interest persisted into the settlement, a pattern that often signals momentum may carry into the following session.

The $70 level, a psychologically important round number, was breached and held during the session. WTI crude's move outpaced the broader energy complex, with the magnitude of the gain reflecting commodity-specific factors rather than a broad-based sector rally. The intraday amplitude of 3.12% placed the session among the most volatile trading days for WTI crude in recent weeks.

The weekly U.S. crude inventory report from the Energy Information Administration will provide the next directional signal for WTI crude. Traders will watch for inventory data that could confirm or challenge the supply narrative driving the session's price action. A sustained move above $70.43 would target the next resistance zone, while a break below $68.58 would signal a reversal of the session's gains.

This article is for informational purposes only and does not constitute investment advice.