Futures for West Texas Intermediate (WTI) crude oil have been performing tremendously. Ever since the post-election collapse, it has managed to remain above that very important $60 threshold. This milestone is important, as it represents a key psychological barrier. It is a 50% Fibonacci retracement of the last bear leg from $64.70 down to $55.14. WTI oil prices hold steady, a sign of a market flush with modest optimism. Traders today are anxiously waiting for news of the latest US-China trade negotiations.
WTI oil prices likely to skyrocket this week, up more than 7%. That’s the largest weekly gain since the final week of September 2024. That value has jumped up ever since escalation of a trade conflict between the United States and China seemed less likely. These two countries happen to be the world’s two largest consumers of oil, largely fueling this increase. With geopolitical tensions subsiding, the global demand outlook for WTI crude oil is looking more positive, propping up its recent bullish price action.
To further sweeten the deal, on Thursday – coinciding with TPH’s bullish report – WTI oil prices shot up by roughly 4%. This increase was propelled by positive sentiment after last weekend’s announcement of imminent US–China trade talks. This powerful rally has taken WTI oil over the crucial psychological resistance level of $60. It even blasted past $61.05, clearing the important Fibonacci 61.8% retracement level. A weekly close above $60 will be key if we are to continue this bull run. That will go a long way toward maintaining a bullish bias of near-term price actions.
Much of the market is buoyed by positive sentiment. Fears of oversupply have returned, notably after OPEC+ came through with a third straight output hike — this time of 960,000 bpd effective June 1. This, combined with easing trade tensions, has soothed fears of oversupply. Therefore, this particular development bolsters a newly improved market position for WTI oil.
The technical indicators in the WTI oil daily chart are mixed, failing to send consistent signals that could offer sharper directional clarity. Resistance levels for WTI oil are seen at $61.05, $61.79, $62.09, and $62.44. The floor is set at $59.92, $58.98, $58.69 and $57.40. A break of the $61.05 resistance looks required to confirm a clearer bullish signal for WTI oil.