Oil sees little recovery as WTI hangs around 63.00
- Crude oil tumbles back into March's consolidation after a risk-off Monday, and oil is struggling to recover.
- Middle East tensions have been unable to stem the flow as the US and Russia output more and more oil.
Crude oil tumbled in Monday's market as risk appetite withered in the face of retaliatory tariffs from China, and WTI is stuck on the low end near 63.00/barrel as tension remains.
Increasing Russian output is undermining the OPEC's efforts to cut production and keep oil prices elevated, despite Russia's agreement to cut how much oil they produce to keep in line with OPEC targets. Russia's widening output meets the current oversupply pouring out of the US in the middle, and crude prices are suffering from an eating away of support.
Middle East tensions have been flaring between Saudi Arabia and Iran, but things seem to have cooled down for now and oil has resumed dropping.
WTI Levels to watch
After Monday's decline, support is thin for crude at Monday's low of 62.75, and the next support zone is mid-March's swing high at 62.25, while resistance sits at the week's current high of 65.35, with near-term resistance at the 64.00 handle, the 50.0 Fibo level of yesterday's move lower.