Regional Disruptions and Domestic Policy Add Complexity
Ukraine’s drone attacks on Russian refineries, Iran’s rejection of GCC claims over disputed fields, and Iraq-Turkey pipeline tensions underscore the fragility of Middle Eastern and Eurasian supply chains. In North America, Saskatchewan is grappling with budget shortfalls due to overestimating oil prices at $71 per barrel, when the market is actually closer to $61. That $10 gap has left the province exposed to a potential $180 million shortfall, underlining how government revenues remain hostage to volatile energy markets.
Technical Levels for WTI and Brent Signal Bearish Bias
On the charts, CL=F WTI crude faces resistance near the 200-day moving average, with upside capped until prices reclaim the $63.50–$64.00 zone. Immediate support lies near $60, with a breakdown below that level risking a move toward $58. BZ=F Brent crude is locked under $66.00 resistance, with sellers pressing toward $64.00. Analysts warn that without a fresh bullish catalyst such as an unexpected supply disruption or stronger demand rebound, oil prices could remain under pressure into mid-September.
Investor Outlook: Bearish Tilt Until Fundamentals Shift
With U.S. production holding at 13.2 million barrels per day and OPEC+ considering additional output, the balance of risk remains tilted lower. The demand side is hampered by weak U.S. job growth, slowing European economies, and uncertain Chinese industrial demand. Unless geopolitical shocks remove barrels from the market, both WTI (CL=F) and Brent (BZ=F) look vulnerable to further losses. Traders are eyeing the OPEC+ meeting closely, as any decision to push more supply could accelerate the move toward sub-$60 levels for WTI.
That’s TradingNEWS