American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

WTI crude oil price analysis: here’s why it may crash to $40

by admin April 14, 2025
April 14, 2025
WTI crude oil price analysis: here’s why it may crash to $40

The West Texas Intermediate (WTI) crude oil price has retreated this year as concerns about demand and supply remain. WTI, which is the America’s oil benchmark, dropped to $61.30, down by over 24% from its highest point this year. This article explores why the price will keep falling this year.

WTI crude oil price technical analysis

One of the top reasons why the WTI crude oil price will continue falling is that it has formed a descending triangle pattern on the monthly chart. This triangle is made up of a horizontal line at $64, where it failed to move below several times since 2023, and a diagonal line that connects the highest swings since July 2022.

The crude oil price has moved below the 50 and 100-week Exponential Moving Avrages (EMA), a sign that bears are in control for now. Also, oscillators like the Relative Strength Index (RSI) and the MACD have continued falling.

Therefore, a combination of the descending triangle, trend indicators like moving averages, and oscillators like the Stochastic and Relative Strength Index (RSI), points to more downside in the coming weeks. The next point to watch will be at $40, which is derived from measuring the widest point of the triangle and then the same distance from the neckline. 

The bearish WTI crude oil forecast will become invalid if the price rises above the upper side of the descending triangle indicator. This view is similar to our recent Brent forecast.

WTI crude oil price chart | Source: TradingView

Oil has weak fundamentals

The bearish crude oil price forecast is also because of the weak fundamentals. First, analysts at the Energy Information Administration (EIA), International Energy Agency (IEA), and Goldman Sachs have all slashed their oil demand for the year, citing the ongoing trade war between the United States, China, and other countries. This war could lead to a recession, which will affect demand by over 600k barrels a day.

At the same time, there are concerns that the oil supply is set to increase. OPEC+ members have voted to boost production this year. Similarly, the US, under Trump, is expected to boost production as part of his drill, baby, drill policies. Trump hopes that lower oil prices will help to stabilize inflation in the country.

More supply wlll come from the ongoing talks between Russia and Iran. If they bear fruit, they will likely have a clause on sanctions relief, which will bring millions of barrels of oil online this year. 

Therefore, WTI crude oil price will likely keep falling because of the demand and supply fundamentals that will remain under pressure this year. Falling oil prices will negatively impact energy companies like BP, Shell, Chevron, and Exxon that will see their margins thin over time. This explains why most energy ETFs have retreated lately. 

The post WTI crude oil price analysis: here’s why it may crash to $40 appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Solana price prediction: here’s why SOL soared and what next
next post
Goldman Sachs forecasts gold at $3,700/oz by year-end on rising central bank and ETF demand

Related Posts

Ethereum price prediction as crypto pundits sees it...

December 1, 2024

Grab Holdings stock price forecast amid GoTo merger...

February 4, 2025

Lloyds share price outlook ahead of earnings: buy,...

April 24, 2025

Top 3 crypto tokens to buy the dip...

April 8, 2025

White Gold Corp. Discovers 1 km Long Gold-In-Soil...

February 23, 2024

Warner Bros stock a dirt cheap bargain or...

October 2, 2024

Helium Evolution Announces Filing of Q1-2024 Financial Results

May 22, 2024

Groupon stock price analysis: to surge by between...

April 2, 2025

Atlantic Lithium

May 16, 2024

USD/KRW forecast: Here’s why Korean may rebound to...

December 27, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025
    • Analysis: oil market braces for Mideast volatility, but prices unlikely to top $80/barrel

      June 16, 2025
    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025

    Categories

    • Business (3,165)
    • Investing (2,514)
    • Latest News (1,996)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved