Tuesday’s rally stalled at $63.90, precisely where resistance from the pivot at $63.06 and the 50-day moving average at $63.70 converged. The failure to break higher triggered aggressive selling, with prices collapsing below key support levels.
The next technical focus is the minor pivot at $59.60—how traders respond here will shape near-term direction. Bulls may attempt to defend this level to carve out a higher low, while bears are targeting deeper support levels at $55.30 and $54.48 to force out weaker long positions.
U.S.-Iran Nuclear Deal Expectations Weigh on Sentiment
Market pressure intensified after comments from both U.S. and Iranian officials signaled progress toward a nuclear agreement that could ease sanctions on Iranian crude exports.
President Trump noted the U.S. was “very close” to a deal, while Iranian sources indicated willingness to negotiate in exchange for sanctions relief. Traders are factoring in the potential return of sanctioned Iranian barrels to an already fragile supply-demand balance.
EIA Inventory Data Surprises to the Upside
Compounding bearish sentiment, the latest Energy Information Administration (EIA) report showed U.S. crude stockpiles rose by 3.5 million barrels last week, a sharp contrast to expectations for a 1.1 million-barrel draw.
Total inventories now stand at 441.8 million barrels, signaling weakening demand or stronger-than-anticipated supply flows. The inventory build was another catalyst that accelerated Thursday’s sell-off, according to PVM Oil analyst John Evans.
