Crude oil prices have staged a notable rebound after recently testing long-term channel support levels, suggesting a potential stabilization in the market.
West Texas Intermediate (WTI) crude oil has climbed back to approximately $63 per barrel, indicating a recovery from the sharp declines experienced earlier this month.
The recent downturn in oil prices was influenced by a combination of factors, including escalating trade tensions and an unexpected increase in oil production by the OPEC+ alliance.
Brent crude fell below $63 a barrel, marking a 17% decline since the announcement of new tariffs on April 2, 2025.
Additionally, the OPEC+ decision to boost output by 411,000 barrels per day starting in May exceeded market expectations and contributed to the price drop.
Despite these challenges, technical analysis indicates that the market may be finding its footing.
The rebound from key support levels suggests that crude oil could be stabilizing, although further volatility and tests of support remain possible.
Looking ahead, market participants will be closely monitoring developments in global trade policies, OPEC+ production decisions, and economic indicators to assess the sustainability of this rebound.
While the recent recovery offers some optimism, the oil market remains susceptible to a range of geopolitical and economic factors that could influence future price movements.
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