Crude oil futures have dropped by $0.47, or -0.73%, settling at $66.43. During the session, prices peaked at $65.11 and dipped to a low of $63.76. Initially, prices climbed above the 100-day moving average of $64.92, but momentum faded, leading to a quick decline. At the lows of the session, prices approached a swing low near $63.61.

Key Support Level

If prices fall below this level, it could allow sellers to push the market down further. Currently, crude oil futures show weakness, with the price settling around $64.43. The price attempted to rise above the 100-day moving average at $64.92 but couldn’t maintain that position, quickly dropping again. This indicates that sellers are still in control. The key level to monitor is the swing low at approximately $63.61. If prices break decisively below this point, it would signal increased selling pressure in the coming weeks and imply that the recent rally attempt has failed. This technical weakness aligns with the latest supply data. The most recent report from the Energy Information Administration revealed an unexpected increase in U.S. crude inventories by 2.1 million barrels, suggesting that demand may be weakening more than expected.

Global Economic Concerns

This situation points to broader worries about a global economic slowdown that have emerged throughout the summer of 2025. Persistently high interest rates from central banks in 2024 seem to be finally affecting business activities and travel demand. As a result, traders are becoming more cautious. For those trading derivatives, this scenario may encourage bearish strategies. Purchasing put options could be a way to profit if prices drop below the support level of $63.61, allowing for downside exposure while limiting risk. We’ve seen similar patterns before, especially after the price spikes in 2022. After that peak, oil prices entered a long period of decline as recession fears took hold throughout 2023. Current price movements feel alike, with failed rallies leading to significant drops. However, if prices can reclaim the 100-day moving average around $64.92, this bearish outlook may need reconsideration. A sustained rise above that level could trap sellers and show that the market has absorbed the negative news. This remains a key threshold for bullish investors. Create your live VT Markets account and start trading now.

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