Oil prices extended their recent declines, falling 1.2% on Monday before steadying on Tuesday, as traders await Friday’s highly anticipated meeting between US and Russian leaders. The talks could lead to a partial easing of US sanctions on Russia, an OPEC+ member, potentially adding more supply to the market.
According to Vijay Valecha, Chief Investment Officer at Century Financial, crude prices have been under pressure this year as the OPEC+ producer group accelerated output increases despite lingering risks of oversupply. The US Department of Energy on Tuesday raised its forecast for this year’s global oil surplus to 1.7 million barrels per day, while OPEC maintained a more bullish view, predicting a tighter market ahead. The International Energy Agency’s latest projections are due Wednesday.
US industry data indicated a slight increase in nationwide stockpiles last week, with official figures expected later in the day. In Asian trading hours, Brent futures volumes remained subdued, and volatility in the benchmark hovered near a two-week low.
Technically, Brent is trading at $65.7, with resistance at $67.3 (50 SMA) and support at $63.7. US benchmark WTI is holding below the 9 SMA, reflecting a bearish bias. Key support sits at $62.1, with a breakdown potentially opening the way to the $60–$59 range. Resistance is noted at $63.6, and a move above could see prices test $64.3 and $65.1.
The combination of robust supply forecasts, geopolitical developments, and technical resistance levels is likely to keep crude oil trading under pressure in the short term.
Oman Observer is now on the WhatsApp channel. Click here
