USOIL
Oil is trading below the resistance area of $63.25, and this zone is likely to limit the pace of the upward movement in today’s trading.
|
Support |
59.75 | 57.75 | 55.25 |
| Resistance | 63.25 | 65 |
67.25 |
Crude oil prices witnessed a notable increase, supported by several fundamental and technical factors. West Texas Intermediate (WTI) rose by 1.63% to approximately $62.85 per barrel, while Brent crude climbed by 1.51% to around $65.29 per barrel.
Fundamental Factors:
1- U.S. Court Ruling: The U.S. Court of International Trade issued a ruling blocking most of the “Liberation Day” tariffs imposed by former President Donald Trump, stating that he had exceeded his authority. This decision eased investor concerns about trade tensions, boosting risk appetite in the markets and lifting oil prices.
2- Supply Concerns: Fears over oil supply have grown due to the potential imposition of new U.S. sanctions on Russian oil and Chevron’s suspension of operations in Venezuela following the revocation of a key U.S. license, which reduced the country’s oil exports. Additionally, wildfires in Alberta, Canada, led to a temporary halt in oil and gas production.
Future Outlook:
With continued support from key fundamentals—such as geopolitical tensions and supply concerns oil prices may keep rising in the short term. However, developments surrounding OPEC+ decisions on increasing output should be closely monitored, as they may put downward pressure on prices. Technically, if WTI manages to break the resistance level at $63.25, this could open the way for further gains toward $67.25 or even $70.00. Conversely, failure to surpass this level may lead to a decline back toward previous support zones.
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