WTI crude traded near $60 per barrel on Wednesday, stabilizing after a three-day decline as geopolitical tensions balanced oversupply concerns. Market sentiment improved following reports of a 4-million-barrel draw in U.S. crude inventories, even as reserves at Cushing, Oklahoma rose.
Persistent global surplus worries kept oil on track for a third monthly loss, with OPEC+ reportedly considering an output hike. Meanwhile, India’s refiners continue evaluating Russian crude purchases amid shifting trade routes.
Natural gas prices also held firm, supported by colder weather forecasts and tightening European supply, reflecting broader market caution ahead of key global policy developments.
Natural gas is trading near $3.84, consolidating within a symmetrical triangle pattern that signals an upcoming breakout. The price is currently holding above the 200-EMA at $3.81 and testing the 50-EMA near $3.86, with the RSI hovering around 48, showing balanced momentum.
A sustained move above $3.95 could trigger a breakout toward $4.09 and $4.21, while a drop below $3.77 may expose downside targets at $3.65 and $3.54.
WTI crude oil is trading near $60.23, holding steady after rebounding from $55.97 support earlier this month. The price is consolidating above the 50-EMA at $60.12, while facing resistance near the descending trendline around $62.54.
The RSI has eased to 47, suggesting neutral momentum after an overbought phase. A sustained move above $60.30 could open the door toward $62.50, while failure to hold above $59.25—the 50% Fibonacci retracement—may trigger a decline toward $58.40.
The 200-EMA at $61.08 remains a key dynamic resistance level; a breakout above it would confirm a bullish reversal. For now, oil is range-bound, with traders awaiting a clear direction before the next move into November’s trading cycle.
Brent crude oil is trading near $63.88, stabilizing after a brief pullback from last week’s high around $66.50. The price currently sits between the 50-EMA at $64.00 and the 200-EMA at $64.89, signaling short-term indecision.
The RSI hovers near 45, suggesting neutral momentum following a sharp correction from overbought levels. Key support lies at $62.55, which aligns with the 61.8% Fibonacci retracement of the recent rally.
A bounce above $64.10 could drive prices toward $65.80, while a drop below $62.50 may expose downside targets at $61.35 and $60.00.
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.