The WTI Crude Oil price forecast indicates a cautious market as prices slightly increased by 0.25% to $79.79. Recent developments suggest that weaker fuel demand and anticipations of continued high U.S. interest rates are putting downward pressure on prices.

Comments from Federal Reserve officials hinting at no imminent rate cuts contributed to a stronger U.S. dollar, making oil more expensive for holders of other currencies and potentially dampening demand.

Impact of Federal Reserve’s Policy on USOIL

Despite geopolitical tensions in the Middle East, the focus among traders has shifted back to the broader economic outlook.

This shift comes as China’s producer price index (PPI) showed a contraction in April, reinforcing concerns about sluggish business demand. Similarly, recent U.S. economic indicators suggest a slowdown, influencing oil market sentiments.

Global Refining Challenges and Demand Dynamics

Additionally, increased supplies from new refineries and subdued demand due to mild weather are challenging refiners’ profits, particularly for diesel.

However, market support is expected from the OPEC+ alliance, which may extend its supply cuts into the second half of the year to stabilize prices.

Technical Analysis and Market Outlook

From a technical standpoint, USOIL is navigating through crucial levels with a current pivot point at $78.92. Resistance is seen at $80.71 and $81.53, with a potential to test $82.30 if upward momentum continues.

Support levels are identified at $77.91 and $77.18, with a critical lower bound at $76.16. The 50-day Exponential Moving Average, at $79.09, may act as a resistance zone. The market could exhibit bullish signals if prices breach the pivot point, though a fall below could see a continuation of the bearish trend.