-
Rally Ends: Crude oil is down over 1%, snapping a three-day rally and falling below $60/bbl due to technical resistance (25 and 50 SMAs).
-
Supply Confidence: Market certainty about future supply has increased, driven by OPEC+'s production restoration and the expectation that the US will not impose stricter sanctions on Russian oil exports.
-
Long-Term View: CBA forecasts Brent crude dropping below $60/bbl by 2026, implying WTI could fall below $57/bbl.
-
Rally Ends: Crude oil is down over 1%, snapping a three-day rally and falling below $60/bbl due to technical resistance (25 and 50 SMAs).
-
Supply Confidence: Market certainty about future supply has increased, driven by OPEC+'s production restoration and the expectation that the US will not impose stricter sanctions on Russian oil exports.
-
Long-Term View: CBA forecasts Brent crude dropping below $60/bbl by 2026, implying WTI could fall below $57/bbl.
The price of crude oil is trading down by over 1% today, despite a positive start to the week. Oil is potentially concluding a three-day winning streak, falling back below the $60 per barrel mark and reacting to a supply zone linked to the 25- and 50-day Simple Moving Averages (SMA).
Investors appear more confident regarding supply availability in the coming months, following OPEC+'s restoration of 2.6 million barrels of crude oil and its willingness to continue increasing production in subsequent months. Furthermore, the market is not overly concerned about a lack of supply availability from Russia. President Putin assures a continued commitment to stable oil supplies to India, while the US President expresses dissatisfaction with Ukraine’s reluctance to pursue peace with Russia under predefined terms. This suggests the United States does not intend to escalate sanctions against Russia in the near future.
The latest forecast from Australia's Commonwealth Bank (CBA) anticipates Brent crude prices falling below $60 per barrel in 2026, which would imply a valuation for WTI below at least the $57 per barrel level.
From a technical analysis perspective, attention should also be paid to the upward trend channel. Until its lower boundary is breached, it is difficult to anticipate a readiness for prices to decline towards the recent local lows near the $57.5 per barrel level.
Daily summary: Dovish Fed signals are driving optimism on Wall Street 🗽US2000 at all-time high
Fed chair Jerome Powell press conference🔎
Wheat and corn weaken after USDA WASDE report
Cocoa Jumps Over 25% Since November 25 Low
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
