WTI Crude Holds Near $62 as Trump-Zelenskyy Talks Loom.
WTI steadies near $62.00 as markets await the Trump-Zelenskyy meeting
FUNDAMENTAL OVERVIEW:
WTI crude remains under pressure, extending its monthly drop of over 10% amid geopolitical tensions and uncertainty surrounding OPEC+ supply. The benchmark slipped more than 1% in the previous session and was last seen trading near $62.10 per barrel during early European hours on Monday, as traders stayed cautious ahead of the Trump-Zelenskyy meeting.
Market focus is on whether President Trump will press Zelenskyy to accept a swift peace deal after his recent talks with Russian President Vladimir Putin, who reiterated demands for Ukraine to cede territory. The meeting will also include European Commission President Ursula von der Leyen, French President Emmanuel Macron, and NATO Secretary General Mark Rutte.
Friday’s crude losses were driven by fading supply disruption fears following Trump’s remarks after his meeting with Putin in Alaska. However, oil may find some support from expectations of a September Federal Reserve rate cut, with recent strong US data bolstering the case. Lower borrowing costs could stimulate economic activity in the world’s largest oil consumer, potentially lending demand-side support to prices.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Neutral Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 63.60
Immediate support level: 60.65
HOW TO TRADE CRUDE OIL
After a significant surge, Crude Oil reversed sharply, erasing all its gains. The price attempted to recover multiple times but failed to regain strength and ultimately broke below its key support zone. It has now fallen below the low of the previous week and is currently retesting that level. If it’s rejected from this point, the price could continue to decline further.
