On the other hand, China’s economic data also supported oil prices. Crude throughput in June jumped 8.5% year-over-year, pointing to stronger consumption. Moreover, the positive developments on US-China trade, along with progress on deals with India and Europe, lifted market confidence. These combined factors hint at continued upside for oil in the near term.
WTI Crude Oil (CL) Technical Analysis
WTI Oil Daily Chart – High Volatility
The daily chart for WTI crude oil shows bearish price action below the 200-day SMA. The geopolitical crisis in the Middle East has triggered heightened volatility in crude oil prices. Despite the fluctuations, the price remains below the 200-day SMA, indicating a continued bearish trend. Therefore, the rebound in the oil prices due to improved economic sentiment might be limited.
A break below the $66 level, followed by a close below $64, would signal further downside potential. Ongoing geopolitical uncertainty keeps oil prices directionless. A decisive break above the $77 level is needed to shift the trend to the upside.