Key Points
- CL-OIL (WTI) down 3.09%, trading at $70.31 per barrel after falling from $73.13
- Brent crude trading lower at $74.23 amid similar pressures
- Potential Kurdistan oil export resumption expected to add supply pressure
- Russia-Ukraine peace talks remain in focus, potentially impacting sanctions
CL-OIL (WTI) dropped sharply, down 3.09% to close at $70.31 per barrel, after declining steadily from a recent high of $73.13. Brent crude futures also eased slightly, trading at $74.23 per barrel. Both benchmarks are continuing their downward trend after significant losses seen on Friday.
The drop in prices has primarily been driven by news that Iraq plans to resume crude exports of 185,000 barrels per day from Kurdistan’s oilfields via the Iraq-Turkey pipeline, ending nearly two years of supply disruption. This added potential supply is weighing on the market sentiment.
Peace Talks and Geopolitical Tension in Focus
Meanwhile, market participants are closely tracking the ongoing diplomatic discussions aimed at ending Russia’s war in Ukraine, now entering its fourth year.
European Union leaders have scheduled an extraordinary summit for March 6 to address support for Ukraine and European security. Recent controversial peace discussions between the U.S. and Russia, excluding Ukraine and the EU, have added uncertainty to the outlook.
Sanctions from the U.S. and EU on Russia have significantly disrupted oil supply, and any progress toward peace could potentially ease restrictions, increasing global energy flows.
Additionally, tensions remain in the Middle East, where Israel and Hamas continue indirect talks on maintaining a ceasefire agreement, contingent upon the release of Palestinian prisoners.
Technical Analysis: CL-OIL Faces Continued Bearish Pressure
Picture: Oil slides to $70.315 amid rising selling pressure; key support at $70.035 tested, as seen on the VT Markets app.
CL-OIL (Crude oil) closed sharply lower at $70.315, marking a significant 3.09% decline from its opening price of $72.557. The session saw persistent bearish pressure, pushing prices down to a low of $70.055.
The moving averages (MA 5,10,30) align firmly bearish, with price action consistently trading below these indicators, suggesting robust downward momentum. The MACD (12,26,9) remains negative but shows diminishing bearish strength, hinting at a potential pause or brief consolidation in selling pressure.
Immediate support is evident at the recent low of $70.035, while resistance has formed notably higher at $71.295. Traders should closely watch these levels—any breach below support might lead to further selling pressure, whereas a move back above resistance could indicate buyers attempting to regain control.
Market Outlook
CL-OIL may see further volatility as traders assess incoming supply dynamics from Kurdistan, progress in Russia-Ukraine talks, and broader geopolitical developments. Any significant updates regarding peace negotiations or sanctions could trigger sharp price movements in the short term.
