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Key Takeaways:
*Oil fell below $63 to a two-month low on weak economic signals and rising U.S. crude stockpiles.
*EIA projects higher supply and slower demand growth, adding pressure to prices.
*Trump–Putin talks in Alaska could lead to easing of sanctions on Russian oil, risking further oversupply.
Oil prices extended their decline, with West Texas Intermediate falling below $63 a barrel to its lowest level in two months, as a series of bearish economic and industry indicators weighed on sentiment.
A softer-than-expected U.S. consumer price index reading fueled concerns over slowing economic activity, potentially curbing energy demand. The downside pressure was compounded by American Petroleum Institute data showing crude inventories rose by 1.5 million barrels, compared with the prior week’s 800,000-barrel drawdown, signaling weaker consumption.
The U.S. Energy Information Administration’s latest outlook added to the bearish tone, forecasting higher crude supply alongside slower demand growth, a combination that could further depress prices.
Traders are now turning their focus to Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, where discussions are expected to address the ongoing war in Ukraine. Any breakthrough that leads to a relaxation of U.S. sanctions on Russian energy exports could unleash additional supply into the market, adding further headwinds for oil.
Technical Analysis
WTI crude oil continues to trade within a well-defined downward channel, with prices currently probing critical near-term support at $63.25 per barrel. A confirmed break below this level would likely accelerate selling pressure, potentially driving prices to their lowest levels in two months and reinforcing the prevailing bearish market structure.
The technical landscape remains decidedly negative, with momentum indicators supporting the case for further weakness. The Relative Strength Index lingers near oversold territory, reflecting persistent downward pressure, while the Moving Average Convergence Divergence indicator flatlines below the zero line—a configuration that typically confirms bearish momentum.
Resistance level: 65.60, 67.90
Support level:60.35, 57.00
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