Oil, Natural Gas, and US Dollar Technical Analysis: Oil Faces Sustained Selling Pressure

WTI Crude Oil (CL) prices continued to fall for a third consecutive day, with WTI now trading below $60 per barrel. Brent crude has dropped about 15% this month, on track for its worst monthly performance on record. The decline reflects rising tariff risks, weak sentiment, and expectations that OPEC+ may ease output cuts.

Moreover, inventory data further pressured prices. The American Petroleum Institute reported a 3.76 million barrel increase in US crude stocks, far above the expected 0.8 million barrel draw. Cushing inventories also increased. On the other hand, gasoline and distillate stocks decreased by 3.14 million barrels, but this was insufficient to offset the bearish crude build.

Despite the drop in prices, demand for Middle East crude remains steady. Saudi Arabia is expected to raise its official selling price by $0.30 per barrel for June Asian deliveries. This follows a sharp $2.30 per barrel cut for May loadings, the most significant reduction since 2022, signalling that pricing adjustments continue to respond to regional market dynamics.

WTI Crude Oil (CL) Technical Analysis

WTI Oil Daily Chart – Bearish Pressure

The daily chart for WTI crude oil indicates that the price has continued to decline after rebounding to the $65 area. This level represents a long-term resistance, and the subsequent drop indicates continued bearish pressure in the oil market. Oil prices have remained under pressure since President Trump’s announcement of new tariffs. The rebound from $55 was driven by oversold market conditions, but that bounce has now neutralised the oversold setup. Prices continue to fall and are likely to move lower over the next few days.

WTI Oil 4-Hour Chart – Descending Broadening Wedge

The bearish pressure in the oil market is also evident on the 4-hour chart. This chart indicates that the price is trading within a descending broadening wedge pattern and continues to decline from the $65 resistance level. The price is approaching oversold levels on the 4-hour chart, indicating a potential short-term rebound before the next drop.

Natural Gas (NG) Technical Analysis

Natural Gas Daily Chart – Key Level of $3

The daily chart for natural gas (NG) shows that prices rebounded from the key level of $3 and subsequently reached the resistance at $3.40. Following that, the price consolidated, setting the stage for the next upward move. Overall, the $3 support level was significant and suggests that the market may continue to rally toward $5.

Natural Gas 4-Hour Chart – Support Level of $3

The 4-hour chart for natural gas shows that the price rebounded from $3 and rallied toward the $3.60 zone. The $3.40 resistance level on the daily chart is likely to break. The price is expected to continue rising. However, the RSI shows that the price has entered the overbought region on the 4-hour chart. This indicates a short-term consolidation before the next advance.

US Dollar (DXY) Technical Analysis

US Dollar Daily Chart – Rebound within Bearish Pressure

The daily chart for the US Dollar Index shows that the index has rebounded from a key area of support and is attempting to push above 100. This rebound does not change the overall bearish outlook, as the trend remains negative. However, the rebound is necessary to stabilise the market. A break above 105 is required to negate the bearish trend in the US Dollar Index.

US Dollar 4-Hour Chart – Inverted Head and Shoulders

The 4-hour chart for the US Dollar Index shows that the index is trading within a descending channel. It has also formed an inverted head-and-shoulders pattern. This pattern has emerged at the support of a descending broadening wedge. This suggests that the index may rebound from these levels. The immediate resistance levels remain at 101.40 and 102.90.