Oil prices are falling as market expectations clash with reality. Many traders expected OPEC+ to delay increasing supply, but the group’s decision to proceed has shifted the outlook. With growing concerns about demand and oversupply, crude oil remains vulnerable to further declines unless market conditions improve.
CL-OIL (WTI Crude) declined to USD 68.000 on Monday, extending its downturn after OPEC+ confirmed plans to proceed with its scheduled production increases from April.
This decision will reinstate 2.2 million barrels per day of voluntary supply cuts that had been in effect for over two years, adding to the current oversupply concerns.
Market participants had largely anticipated that OPEC+ would postpone the output hike. However, the cartel’s decision to push ahead applied additional downward pressure on prices.
CL-OIL fell by 2.76%, settling at 68.000 after opening at 69.931. The session’s high reached 68.445, while the low touched 67.945, reinforcing a strong bearish trend.
Moving averages (MA 5,10,30) indicate a sustained downtrend, with short-term MAs crossing beneath the long-term average. The MACD (12,26,9) remains in negative territory, with the histogram reflecting heightened selling pressure.
Key support is positioned at 67.88, while resistance is near 70.58. A breakdown below support could lead to further declines, whereas a rebound could test resistance levels.
WTI crude is likely to remain under selling pressure unless demand prospects improve. If bearish sentiment continues, the next support level to monitor is USD 67.50. Conversely, a recovery beyond USD 69.00 is required to ease the current downward momentum.
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