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Crude oil futures closed at $76.05, marking a 5.82% decline and the lowest level since March 3. The price is now $1.57 above its 200-day moving average, a critical technical level not breached since February 17. Key resistance lies between $77.10 and $78.97, with a 61.8% Fibonacci retracement at $79.62 acting as a psychological barrier. A break below the 200-day MA at $73.48 could target $67.04, a level last seen before the Iran-US conflict in February 2020.
This selloff reflects heightened bearish momentum in energy markets, driven by oversupply concerns and reduced demand expectations. Traders are closely monitoring technical levels to gauge whether the downward trend will continue or if a rebound is imminent. The proximity to the 200-day MA adds volatility, as a break below it could trigger further losses.
For Gulf investors, the decline in oil prices impacts energy-linked equities and sovereign wealth funds. The broader market implications include potential ripple effects on global economic growth, particularly in oil-dependent economies. Traders should watch for a decisive close below $73.48 or a rebound above $79.62 to determine the next directional move.
