WTI Crude Nears $61.30 as Demand Bounces Back – Time to Break Out?
Oil traders are eyeing a critical resistance level as WTI crude flirts with $61.30—just as global demand shows signs of life. Could this be the breakout play energy markets have been waiting for, or another false dawn cooked up by overeager speculators?
Demand recovery fuels the rally. Refineries are ramping up, travel’s creeping back, and suddenly everyone’s pretending they ’always believed’ in $60 oil again. Classic.
Watch the technicals. A clean break above $61.30 opens the path to $65—but with OPEC+ juggling production cuts like a circus act, don’t bet the farm on stability. After all, what’s a commodities market without a little volatility to keep the hedgers sweating?
Trade Dynamics:
US-China trade talks resume this weekend and should ease economic uncertainty and support oil demand.
US energy companies like Diamondback Energy (FANG) and Coterra Energy (CTRA) have announced rig reductions which should tighten supply over the next few months.
US crude inventories dropped 4.5 million barrels in the week ended May 2, according to API data, adding to oil price support.
Technical Levels to Watch
WTI is still bullish and price is within a clear uptrend channel. MACD has turned up and buyers are entering the market.
Resistance: Immediate resistance at $60.61, if broken could open up the next target at $61.30.
Support: 50-hour EMA at $58.63 and lower channel boundary at $57.70.
Trade Setup
For those looking to get on the trend:
USOIL Price Chart – Source: TradingviewEntry: Long above $60.00 targeting $61.30.
Stop-Loss: Set stop below 50-hour EMA at $58.60.
Take-Profit: Next resistance at $61.30 for a good risk reward.
But if WTI fails to break $60.00, a pullback to $58.20 or even the lower channel boundary at $57.70 is possible.
Final Thoughts
WTI crude oil is up on trade Optimism and supply tightening, the next few days should see some volatility as traders react to US-China talks and production cuts. For now, the path of least resistance is up and $61.30 is the next target for bulls.
