{"id":21137,"date":"2025-04-22T06:36:58","date_gmt":"2025-04-22T06:36:58","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=21137"},"modified":"2025-04-22T06:36:58","modified_gmt":"2025-04-22T06:36:58","slug":"oil-prices-edge-higher-after-sharp-selloff","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/oil-prices-edge-higher-after-sharp-selloff\/","title":{"rendered":"Oil Prices Edge Higher After Sharp Selloff"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/02\/oil13-1024x559.png\" alt=\"\" class=\"wp-image-17008\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>WTI June futures rise 0.7%<\/strong> to <strong>$62.84<\/strong>, recovering from Monday\u2019s 2% decline.<\/li>\n\n\n\n<li><strong>Brent crude trades at $66.62<\/strong>, up 0.5% as traders cover short positions.<\/li>\n\n\n\n<li>Fears over <strong>recession<\/strong>, <strong>Iran supply return<\/strong>, and <strong>Fed uncertainty<\/strong> continue to cloud the demand outlook.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Oil prices <strong>rebounded modestly on Tuesday<\/strong>, with <strong>West Texas Intermediate (WTI)<\/strong> June futures climbing <strong>0.7% to $62.84<\/strong>, following a sharp 2% selloff in the previous session. The bounce was largely attributed to <strong>short covering<\/strong> as traders moved to secure profits on bearish bets amid a fragile risk environment.<\/p>\n\n\n\n<p>Market sentiment remains cautious, with traders wary of a <strong>potential recession<\/strong> driven by <strong><a href=\"https:\/\/t.co\/fA6tq7Kceb\">tariff headwinds<\/a><\/strong> and <strong>U.S. monetary policy instability<\/strong>. President Trump\u2019s renewed pressure on Fed Chair Jerome Powell to cut interest rates sparked fresh concerns over the Fed\u2019s independence, pushing U.S. equity indices lower and the <strong>dollar index to a three-year low<\/strong>, further complicating the outlook for energy demand.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">US environmental groups say they are hiring lawyers and preparing for a major legal showdown with President Donald Trump&#39;s administration over its rapid-fire and sweeping efforts to sidestep federal regulations on oil, gas and coal development <a href=\"https:\/\/t.co\/9H3ygWoxWw\">https:\/\/t.co\/9H3ygWoxWw<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1914552252175417751?ref_src=twsrc%5Etfw\">April 22, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Meanwhile, <strong><a href=\"https:\/\/t.co\/3SHu4Lmoqn\">progress in U.S.\u2013Iran nuclear talks<\/a><\/strong> is tempering oil&#8217;s upside. If sanctions are eased, a return of Iranian supply could flood the market, pressuring prices. This development prompted Russia to revise its <strong>Brent price forecast down 17%<\/strong> for 2025, reflecting concerns of a more supply-heavy market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>Crude oil prices staged a <strong>sharp surge to $64.16<\/strong> before entering a descending correction phase, pulling back toward a low of <strong>$61.77<\/strong>. The recovery since then has been moderate, as the price attempted to reclaim lost ground. Currently, price action hovers around <strong>$62.84<\/strong>, testing resistance at the <strong>short-term moving averages<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-24-1024x446.jpg\" alt=\"\" class=\"wp-image-21138\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Oil prices consolidate below $63 as momentum fades, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>The <strong>MACD<\/strong> shows fading bullish momentum with the histogram turning neutral and signal lines narrowing, indicating a potential slowdown or consolidation. Meanwhile, the <strong>moving averages (5, 10, 30)<\/strong> are converging\u2014suggesting a pause in directional bias unless a catalyst provides renewed momentum.<\/p>\n\n\n\n<p>Upside resistance sits near <strong>$63.23<\/strong>, while support is anchored around <strong>$62.00\u201361.77<\/strong>. A break below this level could expose deeper downside risk, while a clean break above $63.20 would revive bullish sentiment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook Ahead<\/h2>\n\n\n\n<p>With WTI caught between <strong>tariff-related demand risks<\/strong> and <strong>Iran-related supply hopes<\/strong>, oil is likely to remain <strong>range-bound<\/strong> near the $61\u2013$64 band in the short term. Broader direction may hinge on Fed guidance and geopolitical shifts. Weekly inventory reports from the <strong>EIA<\/strong> and <strong>API<\/strong> are next on the radar.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*1azgbap*_gcl_au*NjE5NTE3MjY4LjE3NDQ2MDA3NDI.*_ga*MTY4OTgwNTU5Mi4xNzM2NzQ2MTgy*_ga_J26NL1ZVX7*czE3NDQ5NDQ0NTYkbzEyMCRnMCR0MTc0NDk0NDQ1NiRqNjAkbDAkaDA.\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WTI rebounds to $62.84 after short covering, though lingering demand concerns and U.S.\u2013Iran progress weigh on bullish sentiment. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[66],"class_list":["post-21137","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-oil"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=21137"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/21137\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=21137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=21137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=21137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}