WTI Oil Faces Crossroads at $62.63 Support as Bulls Defend 411K bpd Surge Talk

WTI crude oil fell below $63 on Thursday as oversupply concerns and weak demand weighed on the market. Saudi Arabia may increase OPEC+

Written by: Arslan Butt • Thursday, June 5, 2025 • 1 min read

• Last updated: Thursday, June 5, 2025

Quick overview

WTI crude oil prices fell below $63 due to oversupply concerns and weak demand.
Saudi Arabia plans to increase OPEC+ output to capture summer demand, potentially further depressing prices.
EIA data indicates a crude drawdown but larger-than-expected builds in gasoline and distillates.
Traders are advised to wait for clearer signals before entering trades, with key support levels identified.

WTI crude oil fell below $63 on Thursday as oversupply concerns and weak demand weighed on the market. Saudi Arabia may increase OPEC+ output by at least 411,000 bbls/d in August and more in September to capture summer demand. But that could further depress prices already struggling with lack of buying interest.

Saudi Arabia cut July crude prices to Asian buyers to the lowest in nearly 4 years – a direct admission of cooling demand. EIA data showed a crude drawdown but bigger-than-expected builds in gasoline and distillates.

Geopolitical noise is a drag on risk sentiment. Markets are waiting for fallout from US trade tensions as Canada prepares to retaliate and the EU makes progress in talks. That has energy traders cautious ahead of the next macro catalyst.

Trendline and EMA Alignment is Support

WTI (USOIL) is sitting above the trendline near $62.63 which has been support multiple times in intraday sessions. This level also coincides with the 50 EMA on the 2-hour chart. Short term traders should look for confluence here.

WTI Oil Price Chart - Source: Tradingview — WTI Oil Price Chart – Source: Tradingview

The MACD is flat and recent candles are consolidating – both signs of indecision. A minor bounce has emerged but conviction is lacking without follow through volume. If price holds above $62.63 and forms a bullish engulfing candle, a retest of $63.67 is likely, then $64.34.

Trade Setup: Wait for Clarity, Manage Risk

Newer traders may want to wait. A clean 2-hour close above $63.10 would confirm the trend. Below $62.44 would invalidate the trendline and expose $61.64 and $60.92. In either case, align trade entries with confirmation candles and pair setups with strict stop-loss management in a choppy macro environment.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.