WTI Crude Oil Rebounds After Seven-Day Slump as US-Russia Talks Approach

WTI Crude Oil Rebounds Following Extended Downtrend

West Texas Intermediate (WTI) Crude Oil is showing signs of recovery on Monday, breaking a sharp seven-day losing streak and climbing more than 1.0% in early US trading. Prices are now hovering near $63.50, rebounding from a two-month low that had raised alarm among energy traders.

The rally comes amid renewed market optimism and shifting geopolitical focus, as investors eye the August 15 peace talks between the United States and Russia in Alaska, which could influence the course of the Ukraine conflict and global oil flows.

Technical Levels in Focus

Technically, WTI faces immediate resistance at Friday’s high of $63.89, followed by stronger resistance at the 100-day Simple Moving Average (SMA) of $64.48 and the 50-day SMA at $66.42. On the downside, support levels are seen at $62.36, $61.50, and $60.00.

These levels will be crucial in determining whether the recent bounce is sustainable or simply a short-lived correction after weeks of bearish pressure.

Backdrop: Demand Concerns, Tariffs, and OPEC+ Output

Last week’s 5% decline marked the worst performance for WTI since late June, driven by a mix of global demand concerns, rising OPEC+ production, and escalating tariff measures that are pressuring commodity demand.

The United States recently imposed a 25% tariff on Indian goods, citing New Delhi's continued imports of discounted Russian oil. There are also reports of potential tariff actions against Chinese energy imports, which could further strain demand and trade flows.

These developments, coupled with sanctions on Russia, have heightened volatility in oil markets and made geopolitical developments a key short-term driver for prices.

Outlook: All Eyes on Alaska Talks

The upcoming US-Russia negotiations are a pivotal moment for energy markets. While expectations for a breakthrough remain muted—especially given Russia’s demands regarding Ukrainian territory—even a hint of de-escalation could reduce geopolitical risk premiums embedded in oil prices.

Until then, traders will closely watch headline risk and technical signals to assess the staying power of this rebound.