U.S. Gasoline stocks increased beyond expectations last week.
Saudi Arabia is pushing OPEC+ countries to hike output again in August.
WTI Oil prices remain contained within a $60.00 to $63.00 range.
Crude prices have been capped again at the $63.00 area, before dropping to levels right above $62.00 at the time of writing. A larger-than-expected increase in US gasoline supplies, ongoing global trade uncertainty, and news that OPEC is considering another supply hike have revived fears about an oversupply.
The recovery from the psychological $60.00 level was hit on Wednesday after the US Energy Information Administration reported that gasoline stocks surged by 5.2 million barrels in the last week of May, against market expectations of a 600,00 rise.
OPEC+ countries plan another supply hike
Beyond that, Saudi Arabia revealed that they are pressuring the OPEC+ group to hike output further in the coming months, attempting to gain market share. The Saudis are pursuing another 411,000 bpd increase in August, following an identical hike in July.
This news, coupled with the ongoing global trade uncertainty. which is expected to weigh on future demand for crude, has revived fears of an oil glut, and is keeping crude prices on their back foot on Thursday.ç
Technical analysis: Sideways movement between $60.00 and $63.00
The technical picture shows choppy and volatile trading between the $60.00 level and $63.30 on the upside.
From a wider perspective, a potential double bottom at the 55.00 area suggests the possibility of a deeper recovery, but prices should break the $64.65 neckline to confirm that scenario.
On the downside, supports are at the $61.55 intra-day low and the mentioned $60.00 area.
WTI OIL 4-Hour Chart
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