Moreover, tensions escalated after attacks in Ukraine prompted the US to consider additional sanctions on Russian crude. President Trump warned of a second round of penalties and hinted at broader tariffs on countries purchasing Russian oil. These developments have raised fears of tighter supply and added a geopolitical premium to oil prices. Despite this, the broader technical picture for oil remains bearish and awaits fresh catalysts.
WTI Oil Daily Chart – Consolidation
The daily chart for WTI crude oil shows that the price has been consolidating near the edge of an ascending channel pattern. A break below $62 may find strong support around the $60 area. However, a drop below $60 could trigger a deeper correction toward $55.50.
The price is also consolidating below the 50-day and 200-day SMAs, indicating a bearish trend. As long as it remains below the red dotted trendline, prices are likely to decline in the coming months. A breakout above the $77 level is needed to invalidate the current bearish setup in the oil market.
