West Texas Intermediate (WTI) crude oil extended losses for a second consecutive session on Friday, erasing all of this week’s earlier gains as selling pressure deepened. At the time of writing, WTI trades near $59.80 after briefly touching $59.21—its lowest level since May 8—down over 2% on the day.
Geopolitical premium fades after Gaza peace progress
The US crude benchmark is on track for a second straight weekly decline as geopolitical risk premiums unwind following progress toward peace in the Middle East.
Israel and Hamas have formally approved the initial phase of a Gaza peace plan, under which Israel will begin troop withdrawals while Hamas releases the remaining hostages. The agreement has eased supply disruption fears that had previously supported oil prices.
Technical outlook points to further downside
From a technical perspective, WTI remains firmly in bearish territory. The price is trading below the 21-, 50-, and 100-day Simple Moving Averages (SMAs), clustered between $62.50 and $64.50, creating a strong resistance zone that limits short-term recoveries. The Relative Strength Index (RSI) sits around 35, suggesting that bearish momentum remains intact but not yet in oversold territory—leaving scope for additional downside moves.
Immediate support is seen at $59.50, with a clear break below that level likely exposing the May 8 low at $57.47, followed by the yearly trough near $55.00.
On the upside, the psychological $60.00 level serves as the first resistance barrier, with further hurdles at $61.50. However, as long as WTI remains below the mid-$62 region, the broader market structure marked by lower highs and lower lows continues to favor sellers.
Bearish bias remains dominant
Overall, WTI’s technical setup and fading geopolitical risk both point to sustained downward pressure in the near term. Unless prices reclaim the mid-$62 zone with strong buying momentum, the path of least resistance for crude remains to the downside.
