West Texas Intermediate (WTI) US crude Oil prices remain under heavy selling pressure for the second straight day and retreat further from a multi-week high, around the $72.20 region touched on Tuesday. The downward trajectory drags the commodity to a two-week low, around the $67.00/barrel mark during the first half of the European session and is sponsored by fresh concerns about global oversupply.The Financial Times reported that Saudi Arabia – the world’s biggest crude exporter – is preparing to abandon its price target of $100/barrier as it prepares to increase output. This comes on top of a potential return of Libyan supply and turns out to be a key factor exerting downward pressure on Crude Oil prices. In fact, Libya’s factions took an initial step to resolve the dispute and signed an agreement on the process of appointing a central bank governor. Furthermore, a hurricane threatening the US Gulf Coast has changed its course – away from oil and gas-producing areas near Texas, Louisiana and Mississippi – and is expected to hit Florida as a ‘catastrophic’ Category 4 storm. This further eases worries over supply disruptions, which overshadows signs of firmer fuel demand in the US – the world’s top oil consumer – and further contributes to the fall amid lingering fuel demand concerns from China. From a technical perspective, Crude Oil prices showed some resilience below the 61.8% retracement level of the recent recovery from the lowest level since May 2023 touched earlier this month and bounced back to the $68.00 round-figure mark. That said, the lack of follow-through buying, along with the fact that oscillators on the daily chart are holding in negative territory, suggests that the path of least resistance for the commodity is to the downside. Bearish traders, however, need to wait for a sustained break below the $67.00 round figure before positioning for further losses. Crude might then weaken further below the $66.45 area, or the 61.8% Fibo. level, towards the $66.00 mark and the $65.75-$65.70 horizontal support. The downward trajectory could drag the commodity further towards the $65.00 psychological mark en route to the YTD low, around the $64.75 region.WTI 4-hour chart(Click on image to enlarge)More By This Author:USD/CAD Remains Depressed Near 1.3470-1.3465 Area, Weaker Oil Prices To Limit Losses EUR/GBP Continues Recovery Sparked By Governor Bailey’s Dovishness USD/JPY Price Forecast: Breaks Below Rising Channel, Weakening The Uptrend
WTI Price Forecast: Bounces Off Two-week Low, Seems Vulnerable Near $68.00 Mark
