Oil Markets Show Signs Of Stabilization After April’S Dramatic Collapse

(MENAFN- The Rio Times) Brent crude oil trades at $64.73 and WTI at $61.35 on April 15, both posting modest gains of approximately 0.17%. These slight upward moves continue a week-long stabilization period following the dramatic price collapses that shocked markets earlier this month.

Both benchmarks suffered precipitous declines in early April. Brent crude plummeted from peaks near $74 to lows around $58, representing a 22% drop in just days.

WTI crude similarly plunged from $71 to below $55, erasing nearly a quarter of its value in the same timeframe. The technical picture remains decidedly bearish despite recent price stability.

Both crude benchmarks trade well below their major moving averages. The 200-day indicators show as descending blue lines on the charts near $69 for Brent and $65.5 for WTI.

Chart patterns reveal a consolidation phase taking hold over the past week. Brent has established support around $64 with resistance near $65, while WTI finds buyers at $61 and sellers approaching $62.


Crude Oil Market Analysis
These tight trading ranges suggest market indecision following the significant selloff. The Brent-WTI spread currently stands at approximately $3.38, maintaining relative stability throughout the recent market turbulence.

This consistent differential indicates balanced pressure across global crude benchmarks despite the overall bearish sentiment. The April collapse interrupted what had been a steady uptrend from mid-March through month-end.

Both oil benchmarks had climbed gradually before reversing sharply on April 3, suggesting a specific trigger rather than gradual sentiment deterioration. Bollinger bands visible on both charts have narrowed considerably in recent days.

This contraction typically precedes a significant directional move, though the formation offers no reliable indication of which direction prices might break.

Current price levels place both benchmarks substantially below their 2025 starting points. Brent began the year near $77 while WTI traded around $72, representing year-to-date declines of 16% and 15% respectively despite the recent stabilization.

Traders now await signs of the next directional move. The current consolidation could resolve in either direction, though the position below key moving averages suggests the path of least resistance remains downward for oil markets as trading continues through April.

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