WTI Clings To $62 Support As Supply Headwinds Build
(MENAFN- Mid-East Info) By Daniela Sabin Hathorn, senior market analyst at Capital
US crude (WTI) is attempting to rebound on Tuesday morning after four straight declines, trading near $62.50. Price action continues to respect the $62 handle-now tested repeatedly since mid-August-as immediate support. A decisive break lower would likely extend selling toward $61, and below that the path looks relatively clear to $59.50. US Crude WTI daily chart: -p decoding="async" class="CToWUd" title="A graph of stock marketAI-generated content may be incorrect." src="#" alt="A graph of stock marketAI-generated content may be incorrect." width="624" data-bit="iit" /> Past performance is not a reliable indicator of future results. Overall, supply headlines overwhelm a mixed inventory backdrop. The big driver is a preliminary deal to restart the Iraq–Kurdistan pipeline via Turkey, which would return roughly 230 thousand barrels per day of flows that have been shut since 2023-adding fresh barrels into a market already fretting about oversupply. That hit crude alongside news of OPEC+ supply normalization and stronger-than-forecast Norwegian oil output, while the IEA's latest outlooks keep talking up surplus risk into 2026. Near-term, traders are also eyeing Wednesday's EIA for confirmation after last week's report showed a large crude draw but a total petroleum build-a combo that didn't stop prices from sliding because the forward supply picture deteriorated. Furthermore, concerns about economic growth in China have re-emerged after disappointing economic data last week, which weighs on the outlook for crude demand. So, the bottom line is that pressure is coming from the supply side with pipeline restarts, OPEC+ unwinds and non-OPEC beats, alongside demand worries in the background. Because of this, the outlook for crude remains constrained, with the path of least resistance likely to remain to the downside unless the outlook improves or supply faces another shock.
US crude (WTI) is attempting to rebound on Tuesday morning after four straight declines, trading near $62.50. Price action continues to respect the $62 handle-now tested repeatedly since mid-August-as immediate support. A decisive break lower would likely extend selling toward $61, and below that the path looks relatively clear to $59.50. US Crude WTI daily chart: -p decoding="async" class="CToWUd" title="A graph of stock marketAI-generated content may be incorrect." src="#" alt="A graph of stock marketAI-generated content may be incorrect." width="624" data-bit="iit" /> Past performance is not a reliable indicator of future results. Overall, supply headlines overwhelm a mixed inventory backdrop. The big driver is a preliminary deal to restart the Iraq–Kurdistan pipeline via Turkey, which would return roughly 230 thousand barrels per day of flows that have been shut since 2023-adding fresh barrels into a market already fretting about oversupply. That hit crude alongside news of OPEC+ supply normalization and stronger-than-forecast Norwegian oil output, while the IEA's latest outlooks keep talking up surplus risk into 2026. Near-term, traders are also eyeing Wednesday's EIA for confirmation after last week's report showed a large crude draw but a total petroleum build-a combo that didn't stop prices from sliding because the forward supply picture deteriorated. Furthermore, concerns about economic growth in China have re-emerged after disappointing economic data last week, which weighs on the outlook for crude demand. So, the bottom line is that pressure is coming from the supply side with pipeline restarts, OPEC+ unwinds and non-OPEC beats, alongside demand worries in the background. Because of this, the outlook for crude remains constrained, with the path of least resistance likely to remain to the downside unless the outlook improves or supply faces another shock.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
- Ethereum Based Meme Coin Pepeto Presale Past $6.6 Million As Exchange Demo Launches
- ETH-Based Little Pepe Raises $26M In Presale
- Fitell Corporation Launches Solana (SOL) Digital Asset Treasury With $100M Financing Facility, With Focus On Yield And On-Chain Defi Innovation
- Bitmex And Tradingview Announce Trading Campaign, Offering 100,000 USDT In Rewards And More
- Jpmorgan Product Head Joins GSR Trading MD To Build Institutional Staking Markets
- 1Inch Unlocks Access To Tokenized Rwas Via Swap API
More Story
Comments
No comment