CL New York Crude Oil – Oil prices remain technically weak

Oil prices fell on Tuesday, closing down 1.5% as the International Energy Agency (IEA) warned of a massive supply glut by 2026 and trade tensions between the world's two largest economies, the United States and China, continued. U.S. crude oil fell 1.3%, or 79 cents, to $58.70. The IEA predicts that the global oil market will face a further surplus of up to 4 million barrels per day next year due to increased production by OPEC+ producers and competitors while demand remains sluggish.

As shown by the technical charts, the RSI and Stochastics continue to decline, suggesting that oil prices may continue to test downward pressure in the short term. Overhead resistance is estimated at $60 and $61.70, with the 25-day moving average at $62.25 to $65 being a more important level. The nearest support is expected to be $57.60 and $57, with the next level being the May 5 low of $55.30 to $54.

Forecast range:
Resistance: 60.00 - 61.70 - 62.25 - 65.00
Support: 57.60 - 57.00 - 55.30 - 54.00

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