WTI Crude Oil Struggles Below $66: Will Optimism Around US-China Talks Spark a Recovery

WTI Crude Oil continues to face heavy selling pressure, trapped below the critical long-term resistance level of $66. Despite a brief uptick, the broader trend remains bearish, with prices consolidating near multi-month lows as market sentiment cautiously improves on the back of fresh geopolitical developments.

The current rebound attempt above $60 comes amid renewed optimism surrounding upcoming US-China trade talks. Markets are responding positively to comments from US Treasury Secretary Scott Bessent, who emphasized a measured approach to easing tariffs—not aiming for a sweeping deal, but rather a reduction in trade tensions. Given that China is the world’s largest oil importer, any signs of a de-escalation could significantly lift global demand forecasts, offering much-needed support to crude prices.

Technical Breakdown: Bearish Bias Dominates

From a technical standpoint, the daily chart reveals a pronounced downtrend:

• WTI crude recently broke below the long-term support range near $66, which has now flipped into a resistance zone.

• The 50-day simple moving average (SMA) has crossed below the 200-day SMA, forming a "death cross" pattern—a classic bearish signal.

• A failed attempt to reclaim the $66 level reinforces bearish momentum, with a potential retest of the $50 zone increasingly likely if recovery efforts stall.