WTI Crude Nears $63 After Strikes on Russian Facilities.
WTI crude nears $63.00 after strikes on Russian facilities.
FUNDAMENTAL OVERVIEW:
Crude oil posts modest gains on Monday, edging toward $63.00 after rebounding from Friday’s $61.50 lows. Reports of Ukrainian drone strikes on major Russian oil plants offered support, though near-term demand concerns cap upside momentum.
The weekend attacks, coupled with calls from President Trump for NATO sanctions on Russian crude and China, revived memories of last summer’s strikes that disrupted Russia’s processing capacity, lending additional support. However, Russia downplayed the damage, calling it minor.
Despite the lift, oil’s upside remains constrained by oversupply risks. OPEC+’s slower output hikes are being offset by rising U.S. production, while global economic weakness points to softer demand ahead.
WTI continues to hover near multi-month lows, with price action trapped between $61.50 and $63.70 after rejection from the $66.00 zone earlier this month. From a broader view, WTI has slid nearly 20% from its January highs.
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 Positive trend.
Immediate Resistance level: 64.70
Immediate support level: 61.41
HOW TO TRADE CRUDE OIL
Crude Oil dipped beneath its support level but quickly drew strong buying interest, sparking a sharp rebound. The surge briefly broke above a key resistance zone before losing momentum, resulting in a rapid drop that also breached support. At present, prices are retesting the resistance area, where another rejection could reignite downside pressure.
