WTI crude oil price remains range-bound as traders await OPEC+ decision
WTI Crude consolidates within a range as traders await OPEC+ decision on production increase
WTI crude oil is currently trading around $61.35, reflecting a continuation of its range-bound behavior as it remains trapped between well-defined support near $60.17 and overhead resistance at $63.25. The price action on the 4-hour chart reveals a tightening symmetrical triangle, indicating indecision and a potential breakout setup.
Highlights
- WTI crude oil holds between $60.17 and $63.25, awaiting a breakout.
- OPEC+ is expected to approve a production hike of 411,000 barrels per day for July.
- A breakout above $63.25 could push prices toward $67.60, while a break below $60.17 risks a deeper correction.
Traders are closely watching the outcome of an upcoming OPEC+ meeting, where the group is expected to approve a 411,000 barrels per day production hike for July. This decision is likely to impact the balance between supply and demand, with market participants anticipating how this move might affect oil prices in the coming weeks.
Market awaiting OPEC+ output increase and potential geopolitical tensions
Despite the tightening range, WTI crude’s price has been influenced by several key developments. Russian Deputy PM Alexander Novak has noted that the OPEC+ group has yet to officially discuss the proposed output increase, adding a layer of uncertainty to the market.
Furthermore, geopolitical tensions continue to weigh on oil prices, with President Trump expressing frustration with Russian President Putin amid stalled peace negotiations in Ukraine. Trump has suggested that new sanctions against Moscow might be unveiled this week, adding a potential risk premium to oil markets. Additionally, the U.S. has barred Chevron from exporting Venezuelan crude under a new authorization that limits its activities.
USOIL price dynamics (Source: TradingView)
On the technical side, WTI crude remains in a neutral trend, with a series of mixed momentum indicators. The 4-hour RSI stands at 56.75, showing mildly bullish momentum without signaling overbought conditions. The MACD has shown a positive crossover, reinforcing upward pressure, but a breakout is yet to be confirmed with strong volume. Bollinger Bands are tightening, suggesting that a breakout or breakdown is likely on the horizon.
Support and resistance levels to monitor in the coming days
In summary, WTI Crude remains in a consolidation phase, trapped between $60.17 support and $63.25 resistance. A breakout above $63.25 could signal further upside, targeting $67.60 as the next major resistance. On the downside, failure to hold above $60.17 could open the door for a deeper pullback toward $58 and $55. Traders should keep an eye on the OPEC+ meeting results and any geopolitical developments, as these factors will likely influence the next directional move.
As discussed in prior articles, WTI crude remains in a consolidation phase, with key support at $60.17 and resistance at $63.25. A breakout above $63.25 would suggest a continuation of the bullish trend, while failure to hold support at $60.17 could lead to a deeper pullback. The outcome of the OPEC+ meeting and potential geopolitical tensions will likely dictate the next directional move for crude oil.
