WTI Crude – Bears Maintain Control Following Sharp Two-Day Selloff

WTI crude oil prices extended their sharp decline for a second consecutive day on Friday, plunging to their lowest levels since December 2021. The downturn was triggered by U.S. tariffs that rattled global markets and dampened investor sentiment.

Adding to the bearish momentum was the unexpected decision by the OPEC+ alliance to raise production above market expectations starting in May.

Oil has dropped nearly 11% in under 48 hours, putting it on track for its worst weekly performance since early October 2023.

Key long-term support levels at $62.42 and $61.79—the higher bases formed in December and August 2021 on the monthly chart—are now under heavy pressure.

A decisive break below these levels would suggest further downside, with the next immediate target at the psychological $60.00 mark. A loss of this level could expose a deeper retracement toward $53.87, the 61.8% Fibonacci level of the $6.52 to $130.48 uptrend.

Despite the steep losses, bearish momentum remains strong with little sign of exhaustion. However, oversold daily indicators and some profit-taking on Friday could temporarily pause the decline.

Given the current landscape, any rebound is expected to be limited and may provide better opportunities for re-entering short positions in this firmly bearish market.

The previous base around $65.22/25 (from March 5 and 11) now acts as resistance and is likely to cap any recovery attempts.

Resistance levels: 63.00, 64.49, 65.22, 65.98
Support levels: 62.00, 61.70, 60.86, 60.00