CL New York Crude Oil Futures – Oil Prices Show Tendency to Bottom

Oil prices closed slightly higher on Monday, as the market awaited the outcome of talks between US President Trump and Ukrainian President Volodymyr Zelenskyy following the inconclusive US-Russia summit in Alaska last Friday. US crude futures rose approximately 62 cents, or 0.99%, to settle at $63.42. US President Trump, in a meeting with Ukrainian President Volodymyr Zelenskyy and European leaders on Monday, stated that a peace agreement in the Ukrainian war is possible. Speaking to reporters at the White House, Trump stated that everyone wants an immediate ceasefire, but he is optimistic about reaching an agreement that can curb regional aggression in Ukraine. Separately, Trump told Ukraine to abandon hopes of reclaiming annexed Crimea or joining NATO. Market focus now lies on the success of the trilateral talks and the date of their convening. Investors are also watching Federal Reserve Chairman Powell's remarks at this week's Jackson Hole symposium for clues on US interest rates.

As shown on technical charts, the RSI and Stochastics indicators have rebounded from oversold territory, suggesting a slight slowdown in the near-term decline in oil prices. The 100-day moving average of $64.80 is estimated to be the immediate resistance level for oil prices. If prices remain below this level in the short term, caution is advised that oil prices may not yet have broken free from their weakness. Major resistance is estimated at the 25-day moving average of $65.60, followed by the 250-day moving averages of $68.40 and $70.50. Downside support is expected to revisit $62.50 and $61.90, with further significant support estimated at $61 to $60.

Forecast range:
Resistance: $64.80* – $65.60 – $68.40 – $70.50
Support: $62.50 – $61.90 – $61.00 – $60.00*

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