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Oil prices rebound on supply risks and falling US inventories, eyeing a breakout above $120.

Market News
21 May 2026
FXEmpire
View Source
Bullish
pluang ai news

Oil prices for Brent and WTI crude rebounded after short-term corrections, supported by rising supply risks from Iran's control over the Strait of Hormuz and declining US oil inventories. The geopolitical tension keeps a high risk premium on oil, while technical analysis shows both Brent and WTI are consolidating within wide ranges but poised for potential breakouts above $120. If the US-Iran conflict resolves, prices may pull back temporarily, but ongoing supply concerns and inventory draws suggest oil could remain elevated in the near term.

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