West Texas Intermediate (WTI) crude extended losses on Friday, falling for a third consecutive session as a stronger US Dollar and persistent demand concerns outweighed support from the Federal Reserve’s (Fed) recent rate cut. The US benchmark has given back early-week gains and is set to close the week in negative territory.
At the time of writing, WTI trades near $62.35 per barrel, down 1.30% on the day and retreating from Tuesday’s two-week high. Traders remain focused on evidence of slowing US fuel consumption, while the Greenback’s rebound has added further pressure to dollar-denominated commodities.
Geopolitical backdrop adds uncertainty
The European Union (EU) announced its 19th package of sanctions against Russia, proposing a ban on Russian liquefied natural gas (LNG) imports starting in January 2027 and additional measures targeting Moscow’s shadow fleet of tankers.
Fed cut offers little relief for crude
The Fed’s decision to lower rates by 25 basis points this week has so far failed to lift Oil prices. While cheaper borrowing costs typically support energy demand, the move was widely anticipated and overshadowed by concerns over oversupply and softening consumption.
Technical outlook: WTI capped by 100-day SMA, risks tilt lower
WTI remains squeezed between resistance at the 100-day simple moving average (SMA) at $64.30 and horizontal support near $61.50, a level that has held since early August. Multiple rejections at the 100-day SMA reinforce its role as a ceiling, while $61.50 is the key short-term floor.
A break below $61.50 would expose $60.00 as the next major support. On the upside, a sustained move above $64.30 is required to shift the market toward a more constructive outlook. The Relative Strength Index (RSI) hovers around 45, reflecting weak buying interest and leaving downside risks in focus unless sentiment improves.
