WTI crude oil (CL) extended gains on Tuesday, trading near $64.60 in early Asian hours. This rally reflects supply concerns as peace negotiations between Russia and Ukraine remain stalled. The market is now waiting for the API’s weekly crude oil stock data to provide fresh direction.
On the other hand, geopolitical risks are also driving prices higher. Drone strikes on Russian energy infrastructure have raised fears of supply disruptions. A fire at the Ust-Luga terminal and reduced reactor capacity have amplified these concerns. Meanwhile, US President Trump’s warning of new sanctions has added further uncertainty to the outlook.
Monetary policy signals provide additional support for oil. Fed Chair Powell signalled possible rate cuts in September, putting downward pressure on the US dollar. A weaker dollar makes oil more affordable for global buyers, boosting demand. With market expectations for a rate cut near 84%, bullish momentum in WTI crude oil is building in the short term.
WTI Oil Daily Chart – Rebound within Bearish Pressure
The daily chart for WTI crude oil shows that prices have rebounded from support near the $62 area. This rebound has formed a new upward channel, with immediate resistance at the 50-day SMA around $66.40.
Despite the recovery, the overall trend remains uncertain, as prices continue to consolidate within a wide range. A break below $60 would be negative and could push prices toward $55.50.
A decisive drop under $55.50 would signal further downside momentum. On the upside, strong resistance remains at the $75 region, and a breakout above this level would open the way for additional gains in WTI prices.
WTI Oil 4-Hour Chart – Consolidation with Bearish Bias
The 4-hour chart for WTI crude oil shows that prices are consolidating within a wide range. The drop below the long-term support at $64 quickly rebounded, bringing prices back near the $65 resistance region. This indicates that WTI remains directionless, trading sideways without a clear trend.
