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*Crude oil extends losses on rising concerns over global economic slowdown
*OPEC+ signals potential output increase amid record U.S. production
*U.S.–China tensions weigh further on demand outlook
Market Summary:
Crude oil prices extended their decline last week, tumbling to multi-month lows as growing fears over the global economic outlook dampened sentiment toward the commodity. Market concerns intensified after reports suggested that OPEC+ may consider increasing production, a move that could further weigh on prices already pressured by rising supply.
The U.S. Energy Information Administration (EIA) reported that U.S. crude output remains above 13 million barrels per day, near record levels first hit in April at 13.47 million bpd. The sustained increase in non-OPEC production has added to market oversupply worries, undermining attempts by the cartel to stabilize prices.
Adding to the bearish tone, escalating U.S.–China trade tensions have clouded the demand outlook. The renewed tariff threats and slowing global trade flows have raised concerns that energy consumption could weaken in the coming months. The International Energy Agency (IEA) also warned that global supply growth could exceed earlier expectations, potentially widening the market surplus into year-end.
Looking ahead, traders will closely monitor OPEC+ policy discussions, U.S.–China relations, and key macroeconomic indicators to gauge whether prices can find a floor or risk deeper declines.
Technical Analysis
USOIL, H4:
Crude oil remains under heavy selling pressure, trading near the key support level of $57.85, its lowest in five months. The MACD signals strengthening bearish momentum, while the RSI at 36 remains below the midline, suggesting persistent downside bias.
A sustained break below $57.85 could open the door for further declines toward $51.40, while failure to break lower may lead to a short-term rebound toward $62.35.
Resistance Levels: $62.35, $67.15
Support Levels: $57.85, $51.40
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