INSUBCONTINENT EXCLUSIVE:
Oil markets faced a turbulent 24 hours, with volatility driven by shifting supply expectations and technical exhaustion.According to
entering a phase of back-and-forth trading as traders reassessed risk and reward.Brent crude spot traded at $68.73 per barrel on June 9,
WTI spot registered $65.99, a 13.77% annual decline
Both benchmarks saw a modest uptick from the previous session, but the momentum faded quickly as the session progressed.The highest price
for crude in June reached $72.72, with the trend since early June showing a 13.82% gain, but the last 24 hours marked a clear pause
The technical picture reveals why.On the daily chart, Brent and WTI both show prices above their 50- and 200-day moving averages, confirming
a bullish medium-term trend
However, the Relative Strength Index (RSI) for Brent stands at 72.87 and for WTI at 73.56, signaling overbought territory.Oil Rally Falters
as Supply Optimism Meets Technical Resistance
(Photo Internet reproduction)The Moving Average Convergence Divergence (MACD) remains positive, but the histogram has started to contract,
indicating waning momentum
Bollinger Bands show prices hugging the upper band, a classic sign of stretched conditions.The four-hour charts confirm this loss of steam
Shorter-term moving averages flatten, and MACD lines converge, suggesting a lack of fresh buying.RSI readings have dipped from recent highs,
supporting the view that the market is working off excess froth after a $13-per-barrel rally in just a few sessions
Energy Information Administration forecasts that global oil production will outpace demand through 2025 and 2026, with Brent expected to
average $66 per barrel by year-end
appetite uncertain and global consumption forecasts under review
expectation persists despite ongoing Middle East tensions
The gap higher at the open, followed by a plunge, suggests traders are cautious about chasing prices further without new bullish
catalysts.In summary, oil markets are digesting recent gains amid mixed signals
Technical indicators warn of overextension, while macro fundamentals point to a well-supplied market.Prices may stay range-bound until
either a clear supply disruption or a decisive shift in demand emerges
For now, traders appear content to wait, with support levels in focus and momentum on pause.
