Crude Oil Technical Analysis for March 20, 2025
As of 10:00 AM GMT on March 20, 2025, U.S. West Texas Intermediate (WTI) crude oil futures are trading at approximately $67.30 per barrel.
Current Price Levels and Technical Indicators:
Spot Price: WTI crude oil is trading around $67.30 per barrel.
Relative Strength Index (RSI): The RSI is near 60, suggesting that the market is neither overbought nor oversold, indicating a neutral stance.
Moving Averages:
- 50-period Simple Moving Average (SMA): The price is trading above the 50 SMA, indicating a bullish trend.
- 200-period Exponential Moving Average (EMA): The price is above the 200 EMA, reinforcing the long-term uptrend.
Support and Resistance Levels:
Immediate Support: Approximately $66.50 per barrel, aligning with the 50 SMA and recent price consolidation.
Immediate Resistance: Around $68.50 per barrel, a level that has previously capped upward momentum.
Fundamental Factors:
Inventory Data: The U.S. Energy Information Administration reported a significant decrease in fuel inventories, with gasoline stocks falling by 500,000 barrels and distillates, including diesel and heating oil, decreasing by 2.8 million barrels, surpassing analyst expectations.
Demand Outlook: Despite reduced air travel activity, analysts note that overall oil demand remains robust, supporting current price levels.
Geopolitical Developments: Recent military operations in the Middle East and discussions between the U.S. and Russia regarding the conflict in Ukraine have introduced additional risk premiums into the market.
Conclusion:
Crude oil prices are experiencing upward momentum, supported by favorable inventory data and a positive demand outlook. Technical indicators suggest a continuation of the bullish trend, with immediate support at $66.50 and resistance near $68.50. However, geopolitical developments add a layer of complexity, necessitating close monitoring of the situation.