WTI oil extends sharp decline following OPEC+ decision to boost output further

WTI crude extended its sharp decline for a third consecutive day on Monday, nearly erasing last week’s rally from \$64.99 to \$70.50.

The pullback accelerated after multiple failed attempts to break above the \$70.00 level — a key psychological barrier and the top of the daily Ichimoku cloud. Additional downside pressure came from the recent OPEC+ decision to raise output by 547,000 barrels per day in September, which outweighed earlier support from concerns over U.S. tariffs on key trading partners and threats of sweeping sanctions on Russian oil exports.

The absence of a strong response from major Russian oil buyers, particularly China and India — who have signaled they won’t comply with President Trump’s demands — has emboldened fresh bearish momentum.

Monday’s drop pierced the thick daily Ichimoku cloud (ranging from \$66.64 to \$69.89), generating a fresh bearish signal. A daily close below the cloud base would confirm this signal and open the way toward key support levels at \$65.00 and \$64.70 (aligned with the 100-day moving average and a higher base established in late July).

Technical indicators support a bearish outlook: the break below the cloud and key moving averages (200DMA, 10DMA, and 20DMA), 14-day momentum turning negative, and the RSI slipping below the neutral 50 line all reinforce downside potential.

Any rebounds are expected to remain limited. Ideally, the daily cloud base at \$66.64 will cap recoveries, with additional resistance seen at the converging Kijun-sen and Tenkan-sen levels (\$67.49/\$67.61). A break above these would be needed to ease bearish pressure.

Res: 66.64; 67.12; 67.61; 67.92
Sup: 65.44; 65.00; 64.70; 63.99