WTI Oil Slides 10% in August, Eyes $64 Resistance as Traders Brace for Fed
WTI crude futures are hovering around $63 per barrel on Monday, down from last week as geopolitics...
Quick overview
- WTI crude futures are currently around $63 per barrel, influenced by geopolitical tensions and supply concerns.
- US President Trump is engaged in high-stakes talks with Ukrainian and European leaders, while softening his stance on sanctions against Russia.
- Crude prices have dropped over 10% in August due to investor worries about political instability and economic impacts from tariffs.
- Energy traders are also monitoring the Federal Reserve's upcoming Jackson Hole symposium for potential rate cuts that could affect energy demand.
WTI crude futures are hovering around $63 per barrel on Monday, down from last week as geopolitics and supply concerns weigh on the market. The focus is on high-stakes talks in Washington where US President Donald Trump is meeting with Ukrainian President Volodymyr Zelenskiy and European and NATO leaders. Trump met with Russian President Vladimir Putin last week and Moscow is pressing for territorial concessions from Kyiv.
While the peace process is still ongoing, Trump softened his stance on sanctions against Russia and buyers of its oil. That has raised questions about US willingness to curb flows from Moscow adding to pressure on oil markets already dealing with supply from OPEC+.
Crude has lost more than 10% so far in August, reflecting investor concerns over the political backdrop and economic impact of Trump’s tariffs.
Crude Oil slides to 2-month low on supply glut fears and lower demand outlook
WTI fell 1.81%, pressured by bearish EIA inventory data and IEA surplus projections despite OPEC’s optimistic 2026 forecast; traders remain cautious ahead of new tariffs and US-Russia talks.
— Crypto OnChain Reporter (@OnChainReporter) August 17, 2025
Traders Eye Fed Policy and Demand Risks
Beyond geopolitics, energy traders are watching the Federal Reserve’s Jackson Hole symposium. A September rate cut is expected, with another possible before year-end. Lower rates could help energy demand but global growth worries linger.
Meanwhile OPEC+ production has risen in recent weeks adding physical supply to a market still sensitive to economic uncertainty. That has left crude trading in a sideways range.
WTI Crude Oil (USOIL) Technical Outlook: Key Levels Ahead
On the 2-hour chart, WTI crude is trading around $62.35 showing some stabilization inside a descending channel since early August. The bounce from $61.66 support shows buyers defending the floor but the bias is still bearish until a breakout above resistance.
- 50-period SMA at $63.15 is resistance.
- RSI at 42 is recovering but still below neutral.
- MACD is flattening, bearish momentum fading.
Candlestick pattern is showing spinning tops around current levels. A move to mid-channel resistance at $64.00 will test bulls while failure to hold $61.66 will lead to deeper losses to $60.76 and $59.98.
Trade Setup:
- Long above $63.15-$64.00, target $65.30, stop below $61.60.
- Short below $61.66, target $60.76, stop above $62.80
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