WTI oil price extends decline as crude stockpiles increase
WTI oil prices dropped to their lowest level in nearly a month after an unexpected rise in U.S. crude stockpiles further dampened sentiment.
While the latest dip is encountering some resistance, it may signal a continuation of the downtrend from the January 15 peak at $79.35. Technical indicators suggest strengthening bearish momentum, with the 10-day and 200-day moving averages converging toward a potential death cross, and next week’s daily cloud twist possibly attracting further selling pressure.
The broken 50% retracement level at $73.16 has now turned into solid resistance, which should ideally cap gains and keep bearish momentum intact for a push toward $71.71 (61.8% Fibonacci retracement of the $66.98–$79.35 rally) and the $71.54–$71.18 zone (where the 55-day and 100-day moving averages are aligned).
On the upside, the broken 200-day moving average at $74.52 serves as a key resistance level, with a break above it likely to weaken bearish control.
Near-term price action may remain subdued as markets await the Trump administration’s decision on tariffs for imports from Canada and Mexico, the two largest oil suppliers to the U.S.
Res: 73.16; 73.63; 74.29; 74.52
Sup: 72.01; 71.71; 71.18; 70.00
