Is crude oil forming a short-term bottom along $62 level?
Crude oil is down 1.0% today, further extending its consolidation despite the recent rally in the stock market. This decline follows a gain of 0.84% on Thursday, with the market continuing to move sideways.
For oil markets specifically, these developments are worth monitoring:
- Mixed signals from China and the U.S. on tariff negotiations are creating uncertainty, with China's foreign ministry contradicting President Trump's claims about ongoing trade talks.
- Several OPEC+ members have suggested accelerating oil output increases for June, adding supply concerns.
- Markets remain highly sensitive to news, with oil trading largely following broader market sentiment.
Conclusion
Crude oil continues to fluctuate and remains below the crucial medium-term $65-66 resistance level.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Today's 1.0% decline extends the recent consolidation.
- OPEC+ disagreements, U.S.-China trade tensions pose downside risks.
- In my opinion, the short-term outlook is neutral.
As always, we’ll keep you, our subscribers, well-informed.
Thank you.
Paul Rejczak,
Stock Trading Strategist