West Texas Intermediate (WTI) crude oil extended its decline for a third consecutive session on Friday, pressured by concerns over weakening US demand and expectations of a supply glut in the coming quarters. The rebound in the US Dollar (USD) from its lowest level since February 2022 has also weighed on the commodity, dragging it to the $63.00 area during Asian trading.
Technical outlook points to further downside
WTI is currently testing pivotal support at the 100-hour Simple Moving Average (SMA) near the $63.00 mark. Momentum indicators are turning increasingly bearish and remain comfortably away from oversold conditions, suggesting scope for additional losses. A decisive break below $63.00 would likely invite further selling pressure, targeting $62.40–$62.30 initially before a move toward the $62.00 round figure. Deeper declines could expose the $61.45 level, the lowest since June, revisited earlier this month.
Limited upside potential
On the upside, immediate resistance lies at $63.30, where any recovery attempts may face selling interest. Further resistance is seen at $63.75, followed by the $64.00 psychological barrier. A sustained move above this zone could allow WTI to challenge $64.40, last seen earlier this week, with scope to reclaim the $65.00 level if bullish momentum strengthens.
