WTI Crude Falls 5% to $63.6 as US-Russia Talks Cool Supply Fears
WTI crude oil futures fell below $64 on Friday, the lowest in two months and down 5% for the week – the biggest since June.
Quick overview
- WTI crude oil futures fell below $64, marking a two-month low and a 5% decline for the week.
- Geopolitical tensions are easing, with a planned summit between Presidents Trump and Putin potentially impacting supply concerns.
- Market sentiment remains bearish, with technical indicators showing a downtrend and strong selling pressure.
- Price may consolidate between $63.01 and $64.73, with potential short signals if resistance at $64.73 holds.
WTI crude oil futures fell below $64 on Friday, the lowest in two months and down 5% for the week – the biggest since June. Supply disruption fears are easing as geopolitical tensions subside.
A Kremlin official confirmed Presidents Trump and Putin will meet in the coming days, their first summit since 2021. A White House source said the talks could happen as soon as next week. Progress on Ukraine has reduced supply concerns even with US sanctions on India for buying Russian oil.
Trump imposed a 25% tariff on Indian goods this week and hinted at more tariffs on China, so energy trade may remain a hot button. On top of that, OPEC output expectations and trade disputes are fueling worries about slower growth and weaker demand.
Market Sentiment Bearish
WTI’s chart shows sellers in control. After breaking below $64.73 – a key support from late July – price fell to $63.61. The 50-period SMA at $67.03 is now acting as resistance.
The chart shows a series of lower highs and lower lows, a downtrend. Red candles are long and dominant, selling is strong. RSI is 30.56, oversold but no bullish divergence so the trend is still down.
Key levels:
- Support: $63.01, then $62.14
- Resistance: $64.73, then $67.03
- Momentum: Bearish MACD crossover, negative histogram
WTI Price Forecast and Trade Setup
Price may consolidate between $63.01 and $64.73 before making a move. MACD is still negative so any bounce to $64.73 may find sellers to get back short.
For beginners, the safest play is to wait for confirmation. A failed retest of $64.73 and a bearish engulfing candle could be a short signal with targets $63.01 and $62.14. Stop loss above $65.00 to manage risk if momentum turns.Until WTI gets back above 50-SMA and breaks the series of lower highs, sellers are in control.
Soft supply and weak technicals means crude may stay down short term, more downside than upside.
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