- WTI softened further, extended backslide to $78 per barrel.
- Ceasefire talks drag down Crude Oil bets.
- US Crude Oil production remains thorn in barrel market’s side.
West Texas Intermediate (WTI) US Crude Oil futures fell on Monday after headlines of a possible ceasefire in the ongoing conflict between Israel and Palestinian Hamas. Crude Oil markets will also be keeping an eye out for weekly production updates from the US as output threatens to outpace demand.
Details are still forthcoming, but negotiations between Israel and Hamas have tilted towards a resolution, dragging down barrel bids that have spent months churning higher on broad-market concerns of a conflict spilling over into neighboring countries and threatening global Crude Oil markets.
Weekly production updates from the American Petroleum Institute (API) and Energy Information Administration (EIA) will be closely watched by Crude Oil markets this week. US Crude Oil production has edged into higher territory in recent weeks, and supply is slowly beginning to outstrip demand. With week-on-week barrel counts slowly building out inventories beyond what demand is able to sop up, energy markets will be looking for a pull down in US production figures.
WTI technical outlook
WTI US Crude Oil is seeing market churn near $78.50 as markets grapple with a potential ceasefire deal on the cards, and barrel bids are pricing in a near-term price floor around the $78.00 price handle.
Recent bearish sentiment in Crude Oil has sent WTI further down from the 200-hour Exponential Moving Average (EMA) at $80.43, and US Crude Oil prices are down 3% in May.
WTI has closed in the red for six consecutive trading sessions, dipping below the 200-day EMA at $79.36. An extended decline will drag barrel prices down to February’s swing low near $72.00 per barrel, while the upside will be capped at the last turnaround near $84.00.
WTI hourly chart
WTI daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates gains below 1.1400 on weaker US Dollar
EUR/USD consolidates its recovery gains below 1.1400 in early Europe on Monday. Upbeat risk sentiment on Trump's tairff concession news fails to lift the US Dollar, supporting the pair. US-China trade headlines will continue to dominate ahead of Fedspeak.
GBP/USD holds above 1.3100 as USD sellers refuse to give up
GBP/USD preserves its bullish momentum and regains the 1.3100 mark in the European morning on Monday. The sustained US Dollar weakness suggests that the path of least resistance for the pair remains to the upside. US-China trade updates remain in focus.
Gold price extends its consolidative price move near record high; rising US-China trade tensions favor bulls
Gold price trades with a mild negative bias just below a fresh all-time peak touched during the Asian session on Monday as bulls pause for a breather amid slightly overbought conditions on the daily chart. Furthermore, a further recovery in the global risk sentiment contributes to capping the upside for the commodity.
TRUMP token leads $906 million in unlocks this week with over $330 million release
According to Tokenomist, 15 altcoins will unlock more than $5 million each in the next 7 days. Wu Blockchain data shows that the total unlocked value exceeds $906 million, of which the TRUMP token will unlock more than $330 million.
Is a recession looming?
Wall Street skyrockets after Trump announces tariff delay. But gains remain limited as Trade War with China continues. Recession odds have eased, but investors remain fearful. The worst may not be over, deeper market wounds still possible.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.