On Tuesday, oil prices rose nearly 2%, gaining more than $1 per barrel. This increase followed the announcement of new U.S. sanctions against Iran and a rebound in equity markets. Brent crude climbed by $1.18 to settle at $67.44 per barrel, while the U.S. West Texas Intermediate (WTI) contract for May, which expired the same day, rose by $1.23 to close at $64.32. The more actively traded June WTI contract also gained 2%, ending at $63.47 per barrel.
This uptick came after a sharp drop of over 2% on Monday, driven by signs of progress in nuclear negotiations between Iran and the U.S. and a steep decline in stock markets. However, the U.S. imposed fresh sanctions on a major Iranian oil and LPG shipping network on Tuesday. Meanwhile, global equity markets bounced back on optimism over easing U.S.-China trade tensions. The IMF also downgraded its global economic outlook, while several countries gathered in Washington to negotiate tariff reductions with the Trump administration. Analysts have warned that continued trade tensions and sanctions could significantly dampen global oil demand. On the supply side, U.S. crude oil inventories dropped by approximately 4.6 million barrels last week, far exceeding analysts’ expectations of an 800,000-barrel decline.
WTI Crude Oil Analysis – April 23, 2025
On the daily time frame, WTI crude oil appears to be undergoing a correction following a strong upward move. The price level of 63.595 is a key area to watch — if the price holds above this level, a rally toward $67 is quite possible.
As shown in the 4-hour chart, the price is consistently moving along its trendline during this corrective phase. Given the stability of this uptrend, any pullback to the trendline before reaching the supply zone between 65.72 and 66.82 could offer a buying opportunity.
However, if the price breaks into that supply zone — which also aligns with a major long-term resistance area — we expect a significant rejection. In that scenario, there’s potential for a bearish move toward the $62 level.
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