WTI Crude Oil Pulls Back from Multi-Week High Ahead of US-China Trade Talks

WTI Crude Oil Slides to $63.80 After Multi-Week High, US-China Talks in Focus

West Texas Intermediate (WTI) crude oil prices edged lower on Monday, retreating from their strongest level since April 23. The commodity currently trades in the $63.80–$63.75 range, down around 0.40% on the day, amid mild profit-taking and cautious sentiment ahead of high-level US-China trade negotiations.

WTI Pullback Lacks Bearish Momentum

The drop follows Friday’s breakout past the $63.30 technical barrier, which marked a key resistance. Despite today’s retreat, market sentiment remains broadly constructive, as buyers are likely to emerge on dips—especially with trade optimism and a weaker US Dollar (USD) in play.

WTI touched the highest level in over six weeks on Friday, reflecting strength from easing supply concerns and improved risk appetite.

US-China Trade Talks to Drive Sentiment

All eyes are now on the upcoming talks in London between US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutz, and senior Chinese officials. The discussions aim to de-escalate trade tensions, which if successful, could spur renewed oil demand optimism.

"The fact that the downside remains shallow suggests dip-buyers are waiting for clearer signals from trade talks before entering more aggressively."

Technical Outlook: Key Support and Resistance

• Immediate resistance: $64.00 (psychological level)
• Support levels: $63.30 (breakout level), $62.80 (50-day MA)

The $63.30 zone, which was breached last week, may now act as a pivot support. A sustained break below could indicate deeper correction, while holding above may attract fresh bullish interest.

Related Articles on Tredu.com:

• How US-China Talks Could Shift Oil Market Outlook
• Crude Oil Technical Setup: WTI Bulls Eye $65?
• Energy Prices vs Fed Policy: What’s Driving Commodities?

Key Takeaways:

• WTI trades at $63.80, down 0.4% on the day, after Friday’s strong rally.
• US-China trade optimism and USD softness are supporting oil prices.
• Traders await updates from meetings between Scott Bessent and Howard Lutz with Chinese officials.
• Technical support at $63.30 could attract dip-buyers.
• The broader trend remains bullish unless price dips below key technical levels.