West Texas Intermediate (WTI) crude oil prices dropped slightly to around $61.00 per barrel on Tuesday. This decline came after worries about oversupply and weak global demand outweighed previous gains. A small OPEC+ production increase of 137,000 barrels per day has not had a strong impact on prices, and a stronger US Dollar is also limiting growth. Although there are some geopolitical concerns, like a drone strike on Russia’s Kirishi refinery, oil supplies remain mostly stable. Traders are looking ahead to inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) for more market insights.

Technical Analysis Of WTI

From a technical perspective, WTI struggles to move above the $61.50 resistance level and is trading below major moving averages, which supports a negative outlook. Momentum indicators show weak buying interest, with the Relative Strength Index at around 42 and the MACD below zero. WTI Oil is a type of crude oil produced in the United States and serves as a global price benchmark. Its price is affected by worldwide supply and demand, political events, and changes in the US Dollar value. Regular inventory reports and OPEC’s production limits play a big role in price changes. The current situation for WTI crude suggests a cautious approach in the weeks ahead. With prices having trouble staying above $61.00 and facing strong resistance at $61.50, potential for gains appears limited. Traders might want to explore strategies that profit from either price drops or sideways movement.

Market Supply And Demand Factors

Concerns about weak global demand seem justified, especially after reviewing the latest manufacturing PMI data from China. September 2025’s figures revealed a downturn in factory activity for the second month in a row. This trend matches sluggish economic reports from the Eurozone, which hurts the outlook for energy use. On the supply side, last week’s EIA report highlighted an unexpected inventory increase of 2.1 million barrels, which continues to pressure the market. This increase occurred even with small OPEC+ production changes, indicating supply is still outpacing demand. Without significant inventory reductions, a price rally is unlikely. For traders using options, selling call spreads with a cap near the $62.00 level might effectively earn premiums due to expected price stagnation. Alternatively, purchasing puts with strike prices under $60.00 could bet on a drop below recent lows. These strategies take advantage of the current bearish trend while managing risk. This market behavior echoes what we saw in the second quarter of 2023, when fears about demand also limited rallies. However, we must stay aware of geopolitical risks, such as the recent incident at the Russian refinery. Any sudden supply disruption could quickly undermine bearish positions, making stop-loss orders crucial. Create your live VT Markets account and start trading now.

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