{"id":22962,"date":"2025-05-26T07:17:25","date_gmt":"2025-05-26T07:17:25","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=22962"},"modified":"2025-05-26T07:17:25","modified_gmt":"2025-05-26T07:17:25","slug":"crude-oil-stabilises-as-trade-deadlines-extend","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/crude-oil-stabilises-as-trade-deadlines-extend\/","title":{"rendered":"Crude Oil Stabilises as Trade Deadlines Extend"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2025\/02\/oil10-1024x559.png\" alt=\"\" class=\"wp-image-17005\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>WTI crude holds above $61.70 after rebounding from a low of $60.03, with session highs capped at $62.13.<\/li>\n\n\n\n<li>President Trump\u2019s EU trade deadline extension and a drop in active U.S. rigs support prices, but OPEC+ supply decisions could pressure the rally.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Crude oil markets opened the week on a firmer footing as investors reacted to fresh trade policy headlines and shifting expectations around global supply. West Texas Intermediate (WTI) crude gained 0.39% to $61.77 a barrel by 04:33 GMT, holding steady after a volatile session that saw prices slide to $60.03 before rebounding. Brent crude rose 26 cents, or 0.4%, to $65.04.<\/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\">Oil climbs after Trump extends EU trade talks deadline to July <a href=\"https:\/\/t.co\/IPi2YSSHKS\">https:\/\/t.co\/IPi2YSSHKS<\/a> <a href=\"https:\/\/t.co\/IPi2YSSHKS\">https:\/\/t.co\/IPi2YSSHKS<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1926865951716266025?ref_src=twsrc%5Etfw\">May 26, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>President Donald Trump <a href=\"https:\/\/t.co\/IVjoJAdH9r\" target=\"_blank\" rel=\"noopener\" title=\"\">extended the EU trade deadline<\/a> to 9 July, giving the bloc more time to negotiate a deal and reducing near-term risk of retaliatory tariffs. The news prompted a rally in U.S. equity futures and crude prices in early trade. IG Markets analyst Tony Sycamore said the move provided \u201ca nice push higher\u201d across risk-sensitive assets, including oil.<\/p>\n\n\n\n<p>However, traders remain wary. While the delay reduces short-term trade friction, it doesn\u2019t eliminate broader uncertainty. Markets are still digesting last week&#8217;s passage of Trump&#8217;s <a href=\"https:\/\/t.co\/dgJpRQKa2H\" target=\"_blank\" rel=\"noopener\" title=\"\">tax-and-spending bill<\/a>, projected to add $3.8 trillion to the U.S. debt over the next decade. That bill also includes cuts to green energy subsidies, which has weighed on solar energy equities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">OPEC+ Output Decisions Loom<\/h2>\n\n\n\n<p>Crude gains were also capped by growing expectations that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) could raise output again. The alliance is considering lifting July production targets by another 411,000 barrels per day (bpd). <a href=\"https:\/\/t.co\/GiqN9pulrc\" target=\"_blank\" rel=\"noopener\" title=\"\">Reuters recently reported<\/a> that the group may unwind the rest of its 2.2 million bpd voluntary production cuts by October. So far, OPEC+ has raised targets by about 1 million bpd across April, May, and June.<\/p>\n\n\n\n<p>Warren Patterson, head of commodities strategy at ING, noted that these decisions could keep the market \u201cwell supplied\u201d throughout the second half of 2025. DBS Bank&#8217;s Suvro Sarkar added that oil remains under pressure from OPEC+&#8217;s output strategy and a \u201cmini oil price war\u201d brewing beneath the surface.<\/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 dramatic rebound from the <strong>$60.03 low<\/strong>, surging past the psychological <strong>$62.00 mark<\/strong> before settling into a consolidation zone. The move higher was accompanied by a strong MACD crossover and rising histogram bars, reflecting accelerating bullish momentum. However, the rally stalled at <strong>$62.13<\/strong>, forming a near-term resistance that has since capped upside progress.<\/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-27-1024x445.jpg\" alt=\"\" class=\"wp-image-22964\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: Oil bounces off $60.03 low, tests $62.13 resistance; momentum cooling as price consolidates below key breakout, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Price has now flattened between <strong>$61.50\u2013$61.75<\/strong>, with the MACD histogram declining steadily, suggesting waning momentum. The moving averages have also begun to tighten, indicating a range-bound structure. For bulls to regain control, a breakout above <strong>$62.13<\/strong> is needed. On the downside, watch the <strong>$61.06 support<\/strong>, which was tested previously and may act as a floor if selling resumes.<\/p>\n\n\n\n<p>The latest Baker Hughes rig count offered some support. U.S. firms cut the number of operating oil rigs by 8 last week, bringing the total to 465\u2014its lowest since November 2021. This suggests producers are hesitating to expand supply aggressively at current prices, offering some downside protection.<\/p>\n\n\n\n<p>Still, the rebound lacked conviction. After peaking at $62.13, WTI slipped back into a range near the 30-period moving average. MACD histogram bars have flattened, and the signal line shows a bearish crossover beginning to fade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook<\/h2>\n\n\n\n<p>Oil remains caught between bullish headlines and bearish supply risks. Should prices breach $62.13 with strong volume, bulls could target $63.00. However, if support at $61.50 fails, the next key level lies at $61.068. The $60.03 low remains the immediate downside marker.<\/p>\n\n\n\n<p>Any new developments in OPEC+ deliberations or a breakdown in trade talks could swiftly shift sentiment. Traders should prepare for choppy price action ahead of the bloc&#8217;s next supply meeting and remain alert to updates from Washington and Brussels.<\/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","protected":false},"excerpt":{"rendered":"<p>Oil prices recover from intraday lows amid shifting sentiment on OPEC+ output and extended trade deadlines. &#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-22962","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-oil"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/22962","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=22962"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/22962\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=22962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=22962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=22962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}