Crude Oil Holds Below Key MAs Ahead of Trump-Putin Talks.
Crude Oil Holds Below 50- and 200-Day Moving Averages as Markets Await Trump-Putin Summit Results and Fed Policy Signals
FUNDAMENTAL OVERVIEW:
Crude futures steadied on Thursday, hovering near recent lows as traders awaited Friday’s pivotal meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska. Geopolitical tensions were heightened by Trump’s warning of “severe consequences” if Russia fails to pursue peace in Ukraine, though bearish supply data capped upward momentum.
Both Brent and WTI remain below their 50-day and 200-day moving averages—at $65.70 and $64.05—signaling persistent technical resistance. Trump’s threat of secondary tariffs on nations buying Russian oil, mainly China and India, has added a risk premium, with analysts at Rystad Energy noting that any disruption to Russian supply could surprise markets and lift prices, though skepticism remains.
Meanwhile, U.S. crude inventories rose unexpectedly last week, pointing to weaker demand. The Energy Information Administration reported a 3.036 million-barrel build for the week ending August 8, versus expectations of an 800,000-barrel draw, following the prior week’s 3.029 million-barrel decline. This increase could weigh on WTI prices.
CRUDE OIL TECHNICAL ANALYSIS 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 Neutral trend.
Immediate Resistance level: 63.99
Immediate support level: 61.86
HOW TO TRADE CRUDE OIL
After a sharp rise, Crude Oil prices were rejected and fell significantly to a major support area. Despite several attempts to move higher from there, the price couldn’t sustain itself and ultimately broke below that key support, falling sharply. Crude Oil is now in a pullback phase, and if it faces further rejection, it could continue to decline.