WTI Drops to $66.50 on Trump’s Russia Sanctions Deadline.
WTI slips near $66.50 after Trump issues sanctions deadline for Russia.
FUNDAMENTAL OVERVIEW:
Crude oil prices reversed Monday’s gains and fell to session lows in early Tuesday trading, as market concerns over supply eased following President Trump’s 50-day deadline for potential new sanctions on Russia.
West Texas Intermediate (WTI) had earlier surged to a three-week high of $68.50 during Monday’s European session amid anticipation of a major announcement on Russia by the U.S. President.
Meanwhile, stronger-than-expected GDP and industrial production data from China have alleviated demand concerns. In May, China increased crude imports by 7.4% year-over-year to 12.14 million barrels per day—the highest level in nearly two years.
These encouraging figures, along with OPEC’s forecast for stronger demand in Q3, have helped stabilize oil prices. Additionally, reports suggest OPEC+ may be approaching the end of its recent supply increases, with a possible pause under consideration for October—offering further support to crude prices.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a up channel.
Crude Oil is moving above 50&100 Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 68.60
Immediate support level: 66.40
HOW TO TRADE CRUDE OIL
Crude oil prices saw a sharp surge recently but met strong resistance, resulting in a swift reversal that wiped out earlier gains. The price is currently testing a key support level and showing signs of bullish interest, forming a bullish candle. If this support holds, crude oil may rebound further and retest its upper resistance levels.
