Key Points:
- CL-OIL (WTI Crude) fell to $68.000, down 2.76%, hitting a low of $67.945.
- OPEC+ confirmed its plan to start reversing production cuts from April.
- Market reaction was negative, as traders had expected a delay in the production boost while Brent futures fell to $71.14 amid broader selling pressure in crude markets.
Oil Declines as OPEC+ Sticks to Output Increase
CL-OIL (WTI Crude) dropped to $68.000 on Monday, extending its losses following OPEC+’s decision to proceed with its planned production increases from April. The move will reverse 2.2 million barrels per day of voluntary cuts that have been in place for over two years, adding to the current supply outlook.
Traders had widely expected OPEC+ to delay the output hike, but the cartel’s decision to move forward triggered additional downside pressure.
Technical Analysis: Bearish Momentum Extends
Picture: CL-OIL declines to 68.000, testing support at 67.88 amid strong bearish momentum, as seen on the VT Markets app
CL-OIL dropped 2.76%, closing at 68.000 after opening at 69.931. The session peaked at 68.445 and bottomed at 67.945, showing significant bearish momentum.
The moving averages (MA 5,10,30) indicate a downward trend, with short-term MAs crossing below the long-term average. The MACD (12,26,9) remains in negative territory, with the histogram reflecting increased selling pressure.
Key support is at 67.88, with resistance near 70.58. A break below support may trigger further declines, while an upward reversal could test resistance.
Market Outlook
CL-OIL (WTI Crude) is expected to remain under downward pressure unless demand prospects improve. If selling pressure persists, the next support level to watch is $67.50. On the upside, a recovery above $69.00 is needed to ease the bearish momentum.
