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Dip-buyers entered the market around the $56.30 level, offering some intraday support. But without follow-through buying above $59.67, the rally lacks conviction. A sustained move above this threshold could trigger momentum toward the next technical target at $63.06. Conversely, renewed weakness below $59.67 opens the door for a potential slide to $54.48.
Stronger U.S. Equities Provide Short-Term Lift
Oil prices were buoyed by a broader rally in U.S. equities, driven by upbeat earnings from tech giants Meta and Microsoft. This helped ease some market anxiety over the health of the U.S. economy and counterbalance bearish supply-side signals.
OPEC+ Output Debate Adds Bearish Risk
Supply concerns remain at the forefront. Saudi Arabia has signaled it will not support further supply cuts, suggesting a willingness to tolerate low prices for an extended period. Meanwhile, several OPEC+ members are expected to push for faster output increases at a meeting of eight nations on May 5, adding pressure to a market already grappling with excess supply worries.
U.S. Growth Slows, Adding Demand-Side Uncertainty
Data released Wednesday showed the U.S. economy contracted in the first quarter—the first decline in three years—largely due to a surge in imports as businesses sought to front-run tariffs. The drag from President Trump’s unpredictable trade policy has raised the likelihood of a broader global slowdown, according to a Reuters poll.
Oil Prices Forecast: Bearish Bias Until Resistance Breaks
While today’s bounce reflects short-term buying interest, the broader market tone remains fragile. Unless WTI can hold above $59.67 and attract sustained buying, the path of least resistance is lower. Traders should remain cautious with a bearish bias prevailing below resistance, especially given the looming OPEC+ supply decision and ongoing economic uncertainty.
More Information in our Light Crude Oil Futures.
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