WTI Oil Slips to $63.20 After $66.40 Rejection — Bearish Trend Intensifies
WTI crude oil futures fell to $63.20 on Tuesday as traders absorbed fresh supply news. OPEC+ may approve a 137,000...
Quick overview
- WTI crude oil futures dropped to $63.20 as traders reacted to new supply news and weak demand signals.
- OPEC+ is expected to approve a 137,000 bpd increase for November, contributing to an existing supply glut.
- Iraq's Kurdistan region has resumed oil exports through the Iraq-Turkey pipeline, adding to market uncertainty amid geopolitical tensions.
- Technical indicators suggest a bearish outlook for WTI, with key resistance levels identified at $63.80–$64.20.
WTI crude oil futures fell to $63.20 on Tuesday as traders absorbed fresh supply news. OPEC+ may approve a 137,000 bpd increase for November at its Sunday meeting, which would add to the supply glut at a time when demand signals are weak.
And to make matters worse, Iraq’s Kurdistan region has restarted exports through the Iraq–Turkey pipeline after a US-brokered deal between the KRG, Baghdad, Turkey and foreign operators. The restart of these flows comes as markets are already uncertain about geopolitics.
Geopolitics Weigh on Market Sentiment
Geopolitics are in focus. US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu announced a 20-point peace plan for Gaza on Monday. Trump said if Hamas rejects the deal, Israel will have his full backing to “finish the job”. The EU has also reimposed sanctions on Iran for non-compliance with the nuclear deal, same as the UN.
These developments highlight the fine line between ceasefires and geopolitical flashpoints, both of which are moving oil sentiment.
WTI Crude Oil Technicals: Bearish Bias Intact
From a technical perspective, WTI’s rejection at $66.40 Fibonacci extension was confirmed by a shooting star candle, a bearish reversal signal. The decline produced a “three black crows” on the 2-hour chart, a sign of further selling. Price has broken below the 50-SMA at $64.53 and the 100-SMA at $63.76, which are now resistance.
Key levels to watch:
- Support: $62.91 near-term, then $62.33 and $61.62
- Resistance: $63.80–$64.20 zone, $64.60 overhead
- RSI: 33, oversold and could bounce short-term
For traders, it’s safer to sell into resistance rather than chase weakness. A failed retest of $63.80–$64.20 with a bearish engulfing or shooting star candle would confirm more downside. Stops above $64.60, targets $62.33 and $61.62. Countertrend traders may look to bounce off $62.90 but those are higher risk.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save