WTI crude price steadies near $62 as OPEC+ output signals and trade talks shape sentiment
WTI price holds near key trendline as OPEC+ output plans and trade policy guide sentiment
West Texas Intermediate (WTI) crude oil futures held around $62 per barrel on Thursday, stabilizing after a more than 2% decline in the previous session. Investors are digesting mixed signals from both the supply and geopolitical fronts, as the possibility of accelerated production from OPEC+ meets renewed optimism over U.S.-China trade negotiations.
Wednesday’s sharp decline was triggered by reports suggesting several OPEC+ members plan to propose faster output hikes at the June meeting. Kazakhstan added to the supply pressure by indicating it will prioritize national interests and avoid further cuts at its major oil fields. Despite these bearish signals, some support for crude emerged on reports that the U.S. may reduce tariffs on Chinese imports by up to 50%, with the White House signaling that current rates are unsustainable but not immediately set to change.
USOIL price dynamics (April 2025) Source: TradingView.
Technical levels signal pivotal setup as market awaits clarity
WTI crude is currently testing the April trendline support near $62.00. A decisive break below $61.49 could expose $59.87, while reclaiming $62.78 would open the door to a retest of the 200 EMA at $63.44. Price action remains compressed within a narrowing range, suggesting a breakout or breakdown may be imminent. Brent crude followed a similar trajectory, fading near $65.07 after rejection at the $68.45 resistance level. A sustained push above $65.62 remains critical for Brent bulls to regain control.
Elsewhere, market participants continue to monitor U.S.-Iran nuclear negotiations. A potential deal could increase global supply if sanctions are lifted, but progress remains elusive as Washington imposed new sanctions on Tehran’s energy sector this week. Iran has responded by questioning the seriousness of U.S. intentions, casting doubt on immediate diplomatic breakthroughs.
In recent coverage, we highlighted the rising importance of trade diplomacy and OPEC+ dynamics in shaping crude’s near-term path. The current consolidation phase underscores how these themes continue to drive direction, particularly as traders await resolution on both fronts.
