West Texas Intermediate (WTI) US Crude Oil prices are struggling to build on modest gains made over the past two days, facing resistance near the $63.55 level during the Asian session on Monday. The commodity is currently trading around $62.65, down 0.50% on the day, as it remains within a familiar range without clear bearish momentum.
The lack of clarity regarding US-China trade relations has dampened recent optimism. US Treasury Secretary Scott Bessent stated on Sunday that he was unaware of any recent conversations between US President Donald Trump and Chinese President Xi Jinping. This uncertainty adds to concerns about a potential global recession, which could negatively affect fuel demand. Additionally, OPEC+ plans to increase production, further pressuring crude oil prices.
Despite these challenges, geopolitical risks continue to support oil prices. The ongoing Russia-Ukraine conflict remains a significant concern, with North Korea confirming on Monday that it had sent troops to fight for Russia. US Secretary of State Marco Rubio also noted that the US might abandon efforts to broker peace if progress between Russia and Ukraine remains stalled. These developments are preventing traders from placing bearish bets on crude oil.
Overall, WTI crude appears to have stalled in its recovery from a multi-year low reached earlier this month. It has been fluctuating within a range over the past week, indicating a consolidation phase. With the fundamental outlook mixed and a lack of major macroeconomic data, market participants are cautious about taking strong positions in the near term.
