WTI Crude Steadies at $63.50 as Peace Hopes Fade
WTI crude steadies around $63.50 as optimism over Russia-Ukraine peace fades
FUNDAMENTAL OVERVIEW:
Oil prices held steady on Friday as fading hopes for a Russia-Ukraine peace deal kept them on track for their first weekly gain in three weeks. Brent is up 2.8% this week, while WTI has gained 1%, after both rose more than 1% in the prior session.
Caution lingers amid reports of Russian airstrikes near the EU border and Ukrainian strikes on a Russian refinery. While Moscow seeks major concessions, President Volodymyr Zelenskyy has refused to cede any territory.
Further support for crude may come as the U.S. ramps up pressure on India over Russian oil imports, imposing a 25% tariff on Indian goods starting August 27. With crude making up around 35% of India’s imports, the move could reshape trade flows.
However, demand outlook faces headwinds as expectations of a September Fed rate cut fade. Higher borrowing costs risk slowing U.S. economic activity, weighing on oil consumption in the world’s largest economy.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 64.50
Immediate support level: 61.45
HOW TO TRADE CRUDE OIL
After a strong rally, Crude Oil failed to sustain its gains and dropped sharply. Since then, it has attempted several recoveries, but each move upward faced rejection, pushing prices below key support. At present, Crude Oil is pulling back to test a resistance zone, where another rejection could trigger further downside.