WTI Crude Oil Prices Rebound After 15-Month Low Amid Banking System Anxiety

James Hyerczyk
Updated: Mar 16, 2023, 10:40 GMT+00:00

Oil prices were boosted by OPEC and IEA's forecasts of an increase in oil demand in 2023 due to China's economic reopening and increased air travel.

WTI Crude Oil

In this article:

Key Takeaways

  • WTI Crude Oil Prices Rebound After 15-Month Low Amid Banking System Anxiety
  • Traders Don’t Expect Full-Blown Collapse, WTI Could Bottom Out at $60
  • OPEC’s China Demand Forecast and IEA Report Boosts Oil Prices


U.S. West Texas Intermediate crude oil prices are rebounding slightly on Thursday after falling to a 15-month low the previous day.

The recovery came after Swiss regulators provided Credit Suisse with financial support, calming some market concerns.

However, anxiety about the global banking system continued to weigh on investor sentiment, and both Brent and other benchmarks gave up some early gains.

At 09:39 GMT, June WTI crude oil futures are trading $68.57, up $0.75 or +1.11%. On Wednesday, the United States Oil Fund ETF (USO) settled at $60.03, down $2.90 or -4.61%.

Oil Prices Rebound Slightly After 15-Month Low Amid Banking System Anxiety

WTI crude oil prices dropped below $70 a barrel for the first time since December 20, 2021, while posting a third consecutive loss.

Brent has also seen a decrease of almost 10% since last Friday, while U.S. crude is down by around 11%.

Despite this, traders aren’t expecting a full-blown collapse, and WTI could potentially bottom out at $60.

The recent slump in Credit Suisse’s shares has caused fears about a global financial crisis, but the bank announced on Thursday that it will borrow up to $54 billion from the Swiss central bank to shore up its liquidity and investor confidence.

OPEC’s China Demand Forecast Boosts Oil Prices, Oversupply Concerns Linger

Oil prices received support from OPEC’s increased China demand forecast for 2023 and the International Energy Agency’s report on expected oil demand growth from China’s economic reopening and resumed air travel.

However, oversupply concerns continue to linger, with commercial oil stocks hitting an 18-month high in developed OECD countries and Russian oil output remaining near pre-war levels despite sanctions on seaborne exports.

Daily June WTI Crude Oil

Daily June WTI Crude Oil Technical Analysis

The main trend is down according to the daily swing chart. A trade through $65.89 will signal a resumption of the downtrend. The main trend will change to up on a move through $80.97.

The long-term support zone is $68.76 to $61.27. The nearest resistance is a long-term retracement zone at $73.05 to $78.29.

Daily June WTI Crude Oil Technical Forecast

Trader reaction to the long-term 50% level at $68.76 is likely to determine the direction of the June WTI crude oil market on Thursday.

Bullish Scenario

A sustained move over $68.76 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a potential surge into a resistance cluster at $73.05 – $73.43.

Bearish Scenario

A sustained move under $68.76 will signal the presence of sellers. This could lead to a retest of this week’s low at $65.89. This is a potential trigger point for an acceleration to the downside with $61.27 the next potential downside target.

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About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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