Crude Oil price took a step back in Asian trading on Thursday after a strong run last week. The drop comes as U.S. crude inventories unexpectedly surged and peace talks over the Russia-Ukraine conflict continue to unfold.
Brent crude slipped 0.3% to $75.83 per barrel, while West Texas Intermediate (WTI) crude edged down 0.4% to $71.82 per barrel. The American Petroleum Institute reported that U.S. crude stockpiles jumped by 3.34 million barrels—far more than the expected 2.2 million-barrel increase—suggesting either weakening demand or ramped-up production.
Meanwhile, high-level peace talks are taking place in Saudi Arabia, aiming to ease tensions between Russia and Ukraine. However, the absence of Ukrainian representatives has cast doubt on the legitimacy of these discussions. If the negotiations lead to the lifting of sanctions on Russian oil exports, it could push more supply into the global market and drive prices down further.
At the same time, supply concerns are still in play. Ukrainian drone strikes on a key Russian oil facility have disrupted the flow of Kazakh crude, and cold weather in the U.S. is expected to cut production in North Dakota by around 150,000 barrels per day.
Looking ahead, OPEC+ might rethink any plans to boost supply in an effort to stabilize prices. With rising stockpiles on one side and geopolitical uncertainty on the other, oil markets remain as unpredictable as ever.
Technical Outlook: USOIL (Crude oil Price)
The 4-hour chart of WTI Crude Oil is showing signs of a potential bullish breakout. A double bottom pattern has formed around the $70.00 – $70.80 support zone, which often signals a trend reversal. Adding to the bullish case, the price has also broken out of a falling wedge pattern, further strengthening the outlook.
Right now, US Oil is trading around $72.00, with a short-term target of $73.70. If the momentum continues, the next key resistance level sits at $75.00. However, if the price drops below $70.80, the bullish setup could weaken towards major support of $70.00.
Meanwhile, in the MCX Crude Oil Futures market, crude oil price are hovering around ₹6275 after briefly testing ₹6356 yesterday. If the price holds above this level, it could move toward the next resistance at ₹6410, with a further target at ₹6520.
On the downside, ₹6170 is the first support level to watch, followed by a stronger support zone near ₹6100. If the price fails to stay above the breakout level, a retest of these support zones is likely.
Until then, Happy Trading!
Commodity Samachar Securities
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