WTI oil prices have dropped to around $60.00 after OPEC+ decided not to increase production. Concerns about oversupply pressure prices, and technical signals show a downtrend below important moving averages. Support is currently near $59.65. Right now, WTI is trading at about $60.20 per barrel, after briefly falling to $59.79, a 1.10% decline for the day. The strong US Dollar is putting additional pressure on oil prices, making it more expensive for buyers outside the US. Technical indicators suggest that WTI is bearish as it remains below the 50-day and 100-day simple moving averages (SMAs). The price has struggled to stay above the previous support level of $61.50-$62.00, which is now acting as resistance. The immediate support level for WTI is the 21-day SMA near $59.65, which has been a reliable floor recently. If this level is breached, we could see prices drop to the October 22 low of $57.31 and possibly to $56.00. A clear break above $61.50-$62.00 could help ease the bearish trend, but the 100-day SMA at about $63.65 remains a tough barrier. Most trading activity is happening between $60.00 and $62.50. The Relative Strength Index (RSI) is at 47, suggesting neutral-to-bearish momentum. Looking ahead to November 4th, 2025, our outlook for WTI crude oil is bearish for the next few weeks. The market views OPEC+’s decision to maintain production levels as inadequate to handle the current oversupply, keeping prices suppressed and making it hard for WTI to stay above the $60 mark. Recent US economic data also points to a slowdown, which may weaken fuel demand as winter approaches. Last week’s Q3 GDP figures were softer than expected, and a recent EIA report showed an unexpected inventory increase of 1.8 million barrels instead of the anticipated small decrease. This further suggests that demand is faltering while supply is ample. The strong US Dollar adds to this pressure, with the Dollar Index remaining stable above 100 due to the Federal Reserve’s hawkish stance. For traders in derivatives, selling during rallies may be a smart move. The resistance zone between $61.50 and $62.00 coinciding with the 50-day moving average is a key area for considering short positions or buying puts. We are closely monitoring the support level around $59.65. If prices break below this level, it could trigger more selling, bringing the October lows of $57.31 back into play. If this level fails to hold, we could see prices drop further towards $56.00. This situation reminds us of late 2023, when fears about demand caused prices to plummet from over $90 to the low $70s in just two months. This serves as a reminder that sentiment in the oil market can change quickly. Until we see a decisive close above the $62.00 level, the trend seems likely to continue downward.

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