WTI Crude Futures Fall Below $77, Marking Three-Month Low

WTI crude futures dipped below $77 per barrel on Friday, marking a three-month low and enduring a weekly decline of over 3% amidst concerns over demand and increasing US stockpiles. Stronger US PMI data reduced expectations for Federal Reserve interest rate cuts, impacting the US economic outlook and energy demand. Additionally, recent FOMC minutes indicated some Fed officials' readiness to raise rates in response to inflation spikes. Furthermore, EIA data revealed an unexpected increase in US crude inventories last week, with supplies at Cushing, Oklahoma reaching their highest level since July. Despite this, there was a positive development in US gasoline demand, reaching its peak since November, which provided some support to oil prices ahead of the US summer driving season. As the focus turns to the rescheduled OPEC+ meeting on June 2 (previously scheduled for June 1), market participants await potential output cut extensions by major producers to address global oversupply concerns and bolster prices.

The negative outlook in the oil market, which has persisted for the past four days, continues today. If the downward movement persists, the trendline level that was broken today but not sustained, at 76.40, will be significant. Sustainability below this level may lead to further declines, with 75.75 and 74.80 being the subsequent levels to monitor. However, if there's a reversal upwards, the initial resistance would be at 76.85. Sustaining above this level would lead to the monitoring of resistance levels at 77.60 and 78.30, respectively.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
78.30	77.60	76.85	76.40	75.75	74.80