Crude oil prices came under renewed pressure Thursday, retreating from the $63.00 mark to hover just above $62.00 per barrel, as fresh concerns over a global oversupply weighed heavily on market sentiment.
The latest decline follows a larger-than-expected build in U.S. gasoline inventories and signals from the Organization of the Petroleum Exporting Countries and allies (OPEC+) of further output increases—factors that have reignited fears of an impending oil glut.
The U.S. Energy Information Administration (EIA) reported on Wednesday that gasoline stockpiles surged by 5.2 million barrels in the final week of May, far exceeding market forecasts of a modest 600,000-barrel increase. The unexpected buildup sharply dampened the recovery momentum seen after prices rebounded from the psychological $60.00 level earlier in the week.
Adding to bearish pressure, Saudi Arabia has intensified its push within OPEC+ to expand oil production. The kingdom is advocating for a 411,000 barrels per day (bpd) output hike in August, following an identical increase planned for July. The move is widely interpreted as an attempt to secure greater market share amid uncertain global demand.
Compounding the supply-side pressures, persistent global trade tensions continue to cloud the demand outlook for crude, further curbing investor confidence.
Technical Outlook: Rangebound with Bearish Bias
From a technical perspective, crude remains trapped in a volatile, sideways range between $60.00 and $63.30. Price action remains choppy as traders await a clear breakout.
A broader look suggests potential for a recovery, supported by a possible double bottom formation around the $55.00 area. However, for bullish momentum to gain traction, prices would need to decisively break above the $64.65 neckline to validate the pattern.
On the downside, immediate support lies at $61.55—Wednesday’s intraday low—followed by the key $60.00 psychological threshold.
Until then, crude oil remains vulnerable, with oversupply fears and geopolitical uncertainty continuing to dominate the narrative.
