{"id":36951,"date":"2025-12-16T17:13:54","date_gmt":"2025-12-16T09:13:54","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=36951"},"modified":"2025-12-16T17:13:54","modified_gmt":"2025-12-16T09:13:54","slug":"wti-crude-drops-to-fresh-multi-year-low","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/wti-crude-drops-to-fresh-multi-year-low\/","title":{"rendered":"WTI Crude Drops to Fresh Multi-Year Low"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/Oil4-1024x573.webp\" alt=\"\" class=\"wp-image-41759\"\/><\/figure>\n\n\n\n<p><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>WTI crude<\/strong> falls <strong>1.1%<\/strong> to <strong>$55.87<\/strong>, lowest since 2021<\/li>\n\n\n\n<li>Prices down over <strong>20% YTD<\/strong>, pressured by <strong>OPEC+ output recovery<\/strong>, rising non-OPEC supply<\/li>\n\n\n\n<li><strong>Chinese consumption slows<\/strong> while Ukraine peace talks and possible <strong>sanctions relief on Russia<\/strong> weigh on sentiment<\/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 extended its decline on Tuesday, with <strong>WTI futures<\/strong> slipping another <strong>1.1%<\/strong> to <strong>$55.87<\/strong> in early Asia trade, breaching key support near the <strong>$56 level<\/strong>.<\/p>\n\n\n\n<p>The move deepens year-to-date losses to over <strong>20%<\/strong>, as the market grapples with a deteriorating demand outlook and persistent oversupply concerns heading into 2026.<\/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\">The Middle East\u2019s Dubai oil benchmark is showing signs of worsening oversupply, adding to a slew of indicators pointing to a global glut <a href=\"https:\/\/t.co\/gX2nJQGzP8\">https:\/\/t.co\/gX2nJQGzP8<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2000792197319249928?ref_src=twsrc%5Etfw\">December 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><strong>Brent crude<\/strong> also dipped below the <strong>$60 handle<\/strong>, down 1% to <strong>$59.94<\/strong>.<\/p>\n\n\n\n<p>While early December saw temporary support from geopolitical jitters and US refinery activity, this week&#8217;s developments have been decidedly bearish.<\/p>\n\n\n\n<p>Progress in <strong>diplomatic efforts to end the Russia-Ukraine war<\/strong> has reduced the risk premium in global energy markets.<\/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\">EU Commission chief Ursula von der Leyen said that talks in Berlin with European leaders and Ukraine President Volodymyr Zelenskiy marked &#39;real and concrete progress&#39; toward ending the war in Ukraine <a href=\"https:\/\/t.co\/2JpqByupCx\">https:\/\/t.co\/2JpqByupCx<\/a> <a href=\"https:\/\/t.co\/AT9p0YnJ8m\">pic.twitter.com\/AT9p0YnJ8m<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2000791747849244794?ref_src=twsrc%5Etfw\">December 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Reports suggest that both sides are inching closer to a framework agreement, potentially paving the way for the <strong>easing of sanctions on Russian crude exports, <\/strong>a move that could flood markets with additional barrels.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Supply Overhang Mounts<\/h2>\n\n\n\n<p>According to our research desk, oil is on track for an annual decline as expectations of a growing surplus intensify, driven by <strong>OPEC+ restoring <\/strong><strong>idled<\/strong><strong> output<\/strong> and <strong>rising production in the US and Brazil<\/strong>.<\/p>\n\n\n\n<p>If Russian supply re-enters freely, the surplus may grow even more pronounced in Q1 2026.<\/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\">Exclusive: Russian crude was recently sold to at least one Chinese buyer at what traders say was the steepest discount this year <a href=\"https:\/\/t.co\/uyBSAx9dI2\">https:\/\/t.co\/uyBSAx9dI2<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2000471109959864513?ref_src=twsrc%5Etfw\">December 15, 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>China&#8217;s latest economic data<\/strong> added to the bearish tone. <strong>November activity showed broad-based softness<\/strong>, with <strong>retail sales<\/strong>, <strong>industrial output<\/strong>, and <strong>fixed asset investment<\/strong> all missing expectations.<\/p>\n\n\n\n<p>Weaker domestic consumption from the world\u2019s largest oil importer further dampens the demand outlook.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>WTI crude has extended its downtrend, currently trading at <strong>$55.88<\/strong>, marking a <strong>1.09%<\/strong> drop on the day.<\/p>\n\n\n\n<p>Price continues to respect the descending channel from its <strong>$77.90<\/strong> peak in June, with all short-term moving averages fanning out bearishly.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/image-24-1024x445.jpg\" alt=\"\" class=\"wp-image-36952\"\/><\/figure>\n\n\n\n<p>Momentum remains weak, as reflected in the MACD, which stays firmly below the signal line and zero axis.<\/p>\n\n\n\n<p>A clear support level is forming near the <strong>$55.90<\/strong> region\u2014if broken, downside pressure may accelerate toward the psychological <strong>$52.00<\/strong> zone.<\/p>\n\n\n\n<p>To signal any short-term reversal, bulls would need to reclaim the <strong>$59\u201360<\/strong> band and see a sustained MACD crossover to the upside. Until then, the path of least resistance remains to the downside.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Bottom Line<\/h2>\n\n\n\n<p>Oil remains under heavy pressure amid weak demand signals, a potential supply glut, and signs of de-escalation in key geopolitical flashpoints.<\/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\">A hoard of Venezuelan crude on tankers at sea will provide a cushion for Chinese refiners \u2014 the biggest buyers \u2014 should the US escalate hostilities against the OPEC producer and disrupt exports <a href=\"https:\/\/t.co\/VgLstsxipF\">https:\/\/t.co\/VgLstsxipF<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/2000791106003382470?ref_src=twsrc%5Etfw\">December 16, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>With WTI breaking to multi-year lows, the technical and fundamental picture suggests continued softness unless OPEC+ intervenes or global consumption surprises to the upside.<\/p>\n\n\n\n<p><strong>Learn more about trading <a href=\"https:\/\/www.vtmarkets.com\/energies\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Energies<\/a> on VT Markets <a href=\"https:\/\/www.vtmarkets.com\/Insights\/\" target=\"_blank\" rel=\"noopener\" title=\"\">here<\/a>.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices extend slide on signs of easing geopolitical tensions, weakening demand, and a looming surplus into 2026. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":41759,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[5,66],"class_list":["post-36951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-commodities","tag-oil"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36951"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/41759"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}