Oil Prices Find Footing After Steepest Decline Since 2023

(MENAFN- The Rio Times) TradingView data shows oil prices stabilizing Monday morning after suffering their steepest decline since 2023 over the weekend. WTI crude traded at $59.59 per barrel at 06:49 UTC on April 7, up marginally by 0.23%, while Brent crude reached $62.94, rising 0.24% from previous close.

The charts reveal a dramatic collapse that began late last week and accelerated through the weekend. WTI crude breached the psychologically important $60 threshold on Sunday for the first time since April 2021.

Both benchmarks experienced a precipitous drop, with prices falling from around $67 for WTI and $70 for Brent just days earlier. Market analysts attribute this collapse to escalating global trade tensions and recession fears.

The technical picture remains overwhelmingly bearish. Both WTI and Brent trade well below all key moving averages, with the 50-day, 100-day, and 200-day indicators all pointing downward.

The price action shows multiple failed attempts at establishing support during the decline. Brief consolidation phases quickly gave way to further selling pressure. Trading volumes spiked during the most aggressive downward moves, indicating strong conviction among sellers.



The market structure has deteriorated significantly. Brent's futures curve briefly shifted into contango during the selloff, a condition where near-term contracts trade below longer-dated ones. This pattern typically signals oversupply and bearish sentiment among traders.
Energy Stocks and Oil Markets Struggle
Energy stocks worldwide have suffered substantial losses in response to the oil price decline. The broader market impact extends beyond the energy sector, contributing to volatility across global financial markets.

The charts show minimal buying interest emerging at current price levels. Any rebounds have been shallow and short-lived, suggesting traders remain hesitant to call a bottom despite the magnitude of recent declines.

Technical indicators have reached oversold territory, creating potential conditions for a short-term bounce. However, the dominant trend remains firmly bearish across all timeframes.

Global oil supply concerns have taken center stage in driving market sentiment. Saudi Arabia's recent price adjustments for Asian buyers and OPEC+ production decisions weigh heavily on market psychology.

The price action reflects growing pessimism about global economic prospects for 2025. The speed and scale of the decline suggest traders have dramatically reassessed their outlook for oil demand in recent days.

Markets now await fresh catalysts that might stabilize prices. Policy decisions from major economies and upcoming inventory reports could provide direction for oil prices in the near term.

Traders continue to closely monitor technical support levels, with particular attention to the $58-59 zone for WTI and $62 area for Brent crude as possible inflection points in the current market structure.

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