Parabolic oil price rally cools down, technical overbought pressure raises concerns about market pullback

Golden Ten Data reported on March 4 that crude oil futures prices have stabilized, as the momentum from the Iran-related rally has weakened. Russell Shor from Tradu stated: "The parabolic rise in Brent crude oil and West Texas Intermediate crude oil makes prices highly susceptible to short-term pullbacks, and the market appears to be in an overbought state in the short term." He added that, since tanker traffic through the Strait of Hormuz has essentially come to a standstill, the core challenge now is how to transport oil to the market. He believes that President Trump's proposal to provide naval support to protect tankers passing through the strait could serve as a catalyst for oil prices to partially normalize after a rapid surge.