Oil Prices Hold Steady Amid Ongoing Geopolitical Threats to Supply

Fundamental Overview

Oil prices held steady on Tuesday as markets weighed intensifying geopolitical risks against concerns over persistent oversupply. Continuing Ukrainian drone attacks on Russian energy infrastructure and heightened U.S.–Venezuela tensions helped cushion prices from downside pressure caused by the global supply glut.

West Texas Intermediate (WTI) traded near $59.25 during North American hours, slipping modestly as renewed US Dollar strength dampened demand for dollar-denominated commodities. Traders now await the API crude stockpiles report, which could inject fresh volatility into the market.

Geopolitical disruptions—including halted operations in Novorossiysk following Ukrainian strikes—combined with OPEC+’s decision to keep output unchanged through Q1 2026, may help limit further price declines. The group continues to prioritize market stability over regaining market share, reflecting growing concern about excess supply.

Crude Oil Technical Analysis – Daily Chart

Technical Overview

• Crude Oil is trading within a down channel.
• Price remains below all major SMAs.
• RSI: Neutral zone
• Stochastic: Negative trend
• Immediate Resistance: 60.13
• Immediate Support: 57.32

How to Trade Crude Oil

Crude Oil continues to struggle after a sharp decline, with every recovery attempt met by renewed selling pressure. Although price briefly rebounded from support, the bounce failed to gain traction. Oil is now trading below a key level, and sustained movement beneath it could open further downside potential.

Trade Suggestion:
Limit Sell: 59.34
Take Profit: 58.27
Stop Loss: 59.98

Disclaimer

This report is for informational purposes only and does not constitute financial advice. Trading commodities, forex, or CFDs involves significant risk and may result in the loss of your capital. Always conduct your own research or consult a licensed financial professional before making trading decisions.