US oil consolidates as traders await fresh momentum

[Redator]

US Oil has been consolidating between $65.50 to $70 since the past month war-led volatility calmed down sharply.

Markets had earlier been concerned by supply fears which considerably lowered the Energy commodity's prices since 2025. Momentum has turned in June, but no trend has been forming since.

Despite some renewed tensions in the Middle East and Ukraine-Russia talks in a limbo, Oil prices haven't elevated much further.

Read More: GBPUSD finding buyers in a Dollar Index top

US Oil Multi-Timeframe Technical Analysis

WTI Daily Chart

US Oil Daily Chart, July 18, 2025 – Source: TradingView

Oil prices are contained within two key Moving Averages with the 50-Day MA acting as support and the longer 200-Day MA a key Resistance.

The $79 highs marked in the latter part of June followed by consequent reversal has done enough to mark confusion for Participants.

Daily RSI is hanging around neutral and despite the Key MAs acting as pivots, it seems that the few attempts to retest the May lows have been met by sharp rebounds.

Overall, sentiment in markets has been optimistic but cautious as days go by in the waiting of further new from the infamous Trump tariffs, and with US Shale producers scared by the previous lower prices in Oil, decrease North American production has been announced.

US Oil 4H Chart

US Oil 4H Chart, July 18, 2025 – Source: TradingView

Looking closer, we see further details of the rangebound action contained between the Wednesday $65.62 Lows to the $70 Monday Highs.

Prices have tried to break below the May upwards trendline and having failed to do so, rangebound action may point to further upside.

It will be essential to track overall sentiment in global markets as better sentiment and consumption tends to correlate with higher prospects for the Black Gold.

Since Thursday, buyers have led a bounce on the Main $65 support zone and will need to break the Monday highs to create a new trend – Expect rangebound prices if Oil bulls fail to do so.

WTI Intraday Outlook – 30M Chart

Selling momentum from the beginning of the Week has been found with decent upward reversal as explained in the previous timeframe analysis.

Prices seem to respond to overbought conditions on the 30m Timeframe and with the 30M 50-Period MA tilting upwards, buyers have the current momentum in hand.

They will need to break above the daily $68.67 Highs to confirm this thesis, with a failure to do so pointing to at least a retest of the Key $65 Support Zone.

Watch for tariffs talks, but with them shaking markets less and less, watch for any breakout above the $70 pivot zone or any break below the Key Support in the event of any selloff towards the end of the Weekly session.


Safe Trades!

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.