WTI crude oil (CL) prices extended gains as geopolitical developments boosted market optimism. Hopes for a stronger global economy increased after the US-EU trade deal avoided a full-blown trade war. This positive sentiment increased expectations for fuel demand and pushed Brent Crude Oil (BCO) and WTI oil prices higher.
A potential extension of the US-China tariff truce added further support. Prolonged trade talks between top officials signal an improvement in relations, which could revive global trade and energy consumption. Traders now see a more constructive backdrop for crude demand.
At the same time, President Trump’s shortened deadline for Russia to end the war in Ukraine raised supply concerns. Markets reacted to the possibility of new sanctions, which could disrupt Russian oil exports. Combined with recent EU actions, this geopolitical pressure added a bullish tone to oil prices.
WTI Oil Daily Chart – Negative Trend
The daily chart for WTI crude oil indicates that the price is consolidating within a range near the long-term support level at $66. This indecision is further reflected by the 50-day SMA trading below the 200-day SMA, indicating a bearish trend.
The price recently faced rejection at the $77 resistance, which aligns with the upper boundary of a triangle pattern, and has since corrected lower. A breakout above $77 is needed to trigger further bullish momentum. Conversely, a break below $64 would confirm additional downside potential, with the next target near the $55 level.
WTI Oil 4-Hour Chart – Uncertain Zone
The 4-hour chart shows that the price is rebounding from strong support near the $64 area. Consolidation between the $64 and $70 levels reflects an uncertain zone, where the price direction remains unclear.
A breakout above $70 would suggest further upside toward the $75 region. Conversely, a break below $64 would open the door to additional downside, targeting the $55 area. The RSI is also consolidating between the 30 and 70 levels, reinforcing the current indecisive market sentiment.
