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WTI Oil prices inch higher but stay within earlier ranges, struggling to break above $62.00.
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Market expectations of increased supply continue to weigh on upward momentum.
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Technically, the market lacks a clear direction, with prices fluctuating within a $3.50 range.
Crude prices are recovering on Tuesday as UK and US markets reopen following a long weekend, buoyed by positive market sentiment. The easing of concerns over global growth and oil demand comes after US President Trump delayed tariffs on European goods, a move that the market has welcomed.
However, this rebound may be temporary as worries about oversupply persist. A recent Goldman Sachs report cautions that rising output from non-OPEC producers could push WTI prices down to $52 by 2026.
WTI Oil Technical Analysis: Prices Searching for Direction
Technically, crude oil is struggling to find clear momentum after being rejected near the $63.45 resistance level and holding above the psychological $60.00 mark. The 4-hour Relative Strength Index (RSI) hovers around the neutral 50 line, indicating indecision in the market.
A bullish engulfing candle formed on Friday’s daily chart offers some optimism, suggesting a mild bullish bias intraday. However, upside gains are likely to face resistance near the $62.00 level, which corresponds to the May 26 high. If this level is broken, the next resistance would be the upper boundary of the horizontal channel at $63.50.
On the downside, immediate support comes from the intraday low at $61.00, followed by stronger support around $60.00, marked by the lows on May 15, 22, and 23.
WTI Oil 4-Hour Chart
