Oil Prices Climb as Dollar Weakens—Can WTI Break Above $67?
Oil markets saw modest gains on Wednesday as a weakening U.S. dollar provided temporary relief for crude prices.
However, lingering fears of an economic slowdown and ongoing tariff concerns continue to weigh on investor sentiment.
Brent crude and WTI crude saw slight upticks, with WTI hovering near $66.71 per barrel, reflecting cautious optimism in the market. “Despite growing economic concerns, the oil market remains resilient, indicating that near-term demand is holding up,” said Daniel Hynes, senior commodity strategist at ANZ.
Yet, the outlook remains fragile. The U.S. economy has shown signs of slowing, with stock markets experiencing one of their steepest selloffs in months. Investor anxiety has been fueled by increasing tariffs on imports and weakening consumer confidence, placing downward pressure on crude demand.
Yeap Jun Rong, market strategist at IG, emphasized that “overall sentiment remains fragile despite today’s slight bounce. Until we see clarity on tariff policies and economic growth, oil price movements will likely stay contained.”
WTI Crude Oil – Key Resistance and Support Levels to Watch
WTI crude remains in a technical downtrend, facing strong resistance at the $67.18 pivot point. If prices break above this level, they could attempt a move toward $68.19 and $69.12. However, failure to breach resistance may push WTI lower toward key support zones.
Key Technical Levels:
Pivot Point: $67.18
Immediate Resistance: $67.18
Next Resistance: $68.19
Next Resistance: $69.12
Immediate Support: $65.68
Next Support: $64.56
Next Support: $63.60
A downward-sloping trendline continues to act as a cap on bullish momentum, with the 50-period Exponential Moving Average (EMA) at $67.41 reinforcing resistance. If WTI fails to clear this zone, a drop toward $65.68 or lower could be on the horizon.
Market Drivers: What’s Next for Oil?
Several key factors are driving crude oil prices, and traders are keeping a close eye on upcoming developments:
Weaker U.S. Dollar: A declining dollar typically boosts oil prices by making it cheaper for foreign buyers. However, this effect may be short-lived.
U.S. Crude Production: The U.S. Energy Information Administration (EIA) now expects record production of 13.61 million barrels per day in 2025, potentially adding supply-side pressure.
OPEC+ Decisions: Oil-producing nations are set to adjust output in April, with potential implications for global supply dynamics.
Stockpile Reports: API data shows U.S. crude stockpiles rose by 4.2 million barrels last week. Investors await official EIA data for further confirmation.
While short-term volatility persists, oil markets remain at a critical juncture. A breakout above resistance could trigger a bullish rally, but downside risks loom large if economic concerns continue to dominate headlines.
Key Takeaways:
Oil prices gain as a weaker U.S. dollar supports short-term buying.
WTI faces strong resistance at $67.18 and $67.41 (50 EMA).
Economic slowdown fears and trade tariffs remain downside risks.
As markets digest key economic data and OPEC+ decisions, crude oil traders should brace for potential volatility in the days ahead. Will WTI manage to reclaim $67, or is another selloff looming? Stay tuned for further developments.
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