WTI – Are We Headed Toward $50?

WTI – Are We Headed Toward $50?

The downside potential in oil has been a recurring topic this year, and recent developments continue to support that view. The latest signals from OPEC+, especially the prospect of rising supply, are likely to weigh on prices. So, where do we go from here?

For context: OPEC+ is a coalition of the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers such as Russia. The group coordinates production levels to influence global oil prices. Recent indications suggest that the alliance may unwind voluntary production cuts, which could increase supply and add downward pressure on prices.

As the new trading week kicked off, WTI opened with a downside gap, testing the lows from early April — although those levels have held for now. The macroeconomic outlook remains tense, and a move toward the psychologically important $50 level still appears to be on the table.

The current price zone around $60 is particularly critical in the short term. Ideally, this level won’t be sustainably breached to the upside, which could offer fresh short opportunities. Should prices push higher, the next resistance zones are found at $61.60 and $64.50.

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