Key Points:
- CL-OIL (WTI Crude) declined for the seventh straight week, its longest streak since November 2023.
- Prices briefly rallied to $68.20 on Friday amid Trump’s sanctions threat on Russia.
- Saudi Aramco reduced Asian crude prices for the first time in three months, adding supply concerns.
CL-OIL Declines Amid Economic and Supply Worries
CL-OIL (WTI crude) slipped to $66.53 per barrel early Monday, continuing its downward pressure amid persistent concerns over US-imposed tariffs potentially curbing global fuel demand and economic growth.
Technical Analysis
Picture: Crude oil prices face bearish pressure, testing support around $66.50 amid negative momentum, as seen on the VT Markets app.
WTI Crude Oil (CL-OIL) declined by 0.79%, opening at $67.057 and closing at $66.395. Prices saw volatility, touching a high of $68.120 and dipping to a low of $66.500, indicating increased bearish pressure.
The moving averages (5, 10, 30) show mixed signals, with short-term averages crossing below the longer-term average, highlighting bearish momentum. The MACD (12,26,9) histogram remains negative but is trending toward neutral, suggesting weakening bearish pressure.
Immediate support is at $65.58, and resistance is at $68.20. A recovery above resistance might trigger further gains, while a break below support could extend the downside.
Geopolitical and Supply Factors Add Volatility
Prices saw a short-lived recovery on Friday, peaking at $68.20 after US President Donald Trump threatened increased sanctions on Russia if it failed to secure peace with Ukraine. Traders remain cautious, however, as potential easing of sanctions on Russian energy remains a possibility.
Meanwhile, OPEC+ maintained its planned production increase from April, while Saudi Aramco cut crude prices for Asian markets, reinforcing worries over ample supply and dampening market sentiment further.
Market Outlook
Traders should remain alert to developments surrounding US trade policy and geopolitical tensions involving Russia, as these remain key drivers of CL-OIL price action. Support remains around the $65.50–$66.00 region, with upside resistance likely near Friday’s high of $68.20.
