WTI crude tested the $72/bbl support zone intraday, touching $72.48 before recovering to settle at $73.12. The $72 level has acted as support multiple times since April, and a clean break below it could open the path toward the $68–$70 range.
US gasoline demand at 9.2 million bpd is running 1.8% above last year, providing seasonal support as summer driving season peaks. The gasoline crack spread widened to $22/bbl, suggesting healthy refining margins that support crude demand.
Diesel cracks strengthened to $28.50/bbl, supported by tight distillate inventories in Europe and the US Atlantic Coast. Heating oil demand for winter stockbuilding is expected to provide additional support in Q3.
On the bearish side, floating storage has increased to 68 million barrels globally, up from 55 million barrels in May. This indicates that the physical market is well supplied and that traders are using storage as a bearish carry trade.
The CFTC's Commitment of Traders report showed speculative net long positions in WTI falling to 185,000 contracts, the lowest since March, signaling that the recent price weakness is driven by active selling rather than passive positioning.
The $72–$75 range offers favorable hedging levels for calendar 2027 requirements. The combination of OPEC+ intervention risk, summer demand, and the potential for supply disruptions makes current prices attractive relative to the 2027 forward curve.