US crude oil prices are currently at $63.25, down by $1.55 or 2.39%. Donald Trump believes that crude oil will trade below $60, as lowering oil prices is one of his main goals. He is also against alternative energy sources such as solar and wind. Trump mentioned that domestic oil production has increased by 300,000 barrels per day.

Low Price Testing Moving Averages

Today, the lowest price reached $63.13, testing the 200-hour moving average of $63.15. Earlier, it fell below the 100-hour moving average at $63.62, which could suggest a continued downward trend. Traders are now focusing on the recent low of $61.45. With US crude oil prices around $85 a barrel, the current political climate feels familiar. There’s a push to reduce prices like when oil was in the low $60s. This pressure on gasoline prices for consumers is something traders will keep an eye on. Domestic production remains a crucial strategy, now at a record high of nearly 13.5 million barrels per day. This is a big jump from past levels and challenges OPEC+ efforts to keep prices high through production cuts. The strong US shale industry provides a reliable supply that affects global prices.

Technical Indicators And Market Sentiment

Technically, prices show weakness after failing to stay above $88 last month. They are currently testing the 50-day moving average, an important support level for many traders. A break below this level could lead prices back towards summer lows around $80. For traders dealing in derivatives, the clash between high domestic supply and geopolitical tensions suggests ongoing volatility. The CBOE Crude Oil Volatility Index (OVX) has been rising, indicating market uncertainty. Strategies like buying straddles or strangles may be appealing, as they profit from significant price shifts in either direction. Bearish sentiment is growing in the options market, with the volume of put options (which bet on a price drop) outpacing call options by nearly 2-to-1 over the last two weeks. This trend shows that many traders expect a potential drop, possibly back to the $75 range seen earlier this year. Create your live VT Markets account and start trading now.

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