WTI crude extends losses as sentiment weakens amid fading hopes for trade talks

WTI crude remained in the red for a second straight session, extending losses on Tuesday as fading hopes for progress in US-China trade talks weighed on sentiment.

The initial optimism surrounding trade negotiations gave way to renewed fears of an escalation in the trade war between the world’s two largest oil consumers, raising concerns over a further deterioration in global oil demand.

Adding to the bearish tone, OPEC’s recent decision to boost output starting in June has kept traders defensive, further pressuring prices.

WTI extended its pullback after repeatedly failing to clear resistance at the 50% retracement of the $72.27–$55.12 bear leg, and has now broken below the 38.2% retracement of the $55.12–$64.85 recovery leg at $61.13.

This breach generated a fresh bearish signal, though confirmation requires a daily close below $61.13. A sustained break would reinforce the negative near-term outlook, with bears targeting the psychological $60.00 level and the 50% retracement support.

A firm drop below $60.00 would signal a potential end to the corrective phase and shift the short-term structure decisively bearish.

On the other hand, failure to secure a clear break below the $61.13 pivot could ease immediate downside pressure and preserve the potential for a healthy correction. However, a recovery would need to overcome resistance at the daily Tenkan-sen ($62.35) on a closing basis to gain traction.

Daily technicals present a mixed picture: the Tenkan/Kijun-sen lines remain in bearish formation, while momentum is strengthening and stochastic oscillators hover near oversold levels.

Traders now await the weekly US crude inventory reports—API today and EIA on Wednesday—for further direction.

Res: 61.13; 62.35; 62.55; 63.69
Sup: 60.00; 59.42; 58.84; 57.42