INSUBCONTINENT EXCLUSIVE:
The global oil market experienced significant turmoil over the past 24 hours, with crude prices plummeting to their lowest levels in months
barrel, continuing its downward trajectory with a loss of 0.245 (-0.37%) in early trading.Brent crude futures fell dramatically by $5.04 or
West Texas Intermediate (WTI) crude futures plunged by $5.13 or 7.15% to $66.58.This morning, prices remain under pressure with WTI
continuing to trade below $67 a barrel
anticipated more stable conditions.Key Market DriversOPEC+ Output SurpriseIn an unexpected move that rattled markets, eight OPEC+ nations
agreed to increase oil production by 411,000 barrels per day (bpd) in May, significantly higher than the anticipated 135,000 bpd increase
Largest Single-Day Loss Since August 2022
accelerating the unwinding of their recent 2.2 million bpd production cut that began this month
ShockAdding to market pressures, U.S
President Donald Trump announced sweeping new import tariffs on Thursday, including:A 10% baseline tariff on all imports into the United
from these tariffs, markets still reacted negatively to concerns about potential global economic slowdown.Inventory BuildU.S
according to the Energy Information Administration
This surprise build exacerbated concerns about oversupply.Market AnalysisThe oil market is currently caught between supply and demand
On the supply side, the accelerated OPEC+ production increase signals a potential oversupply situation.OPEC+ officials indicated the
SEB.Technical AnalysisFrom a technical perspective, the chart shows WTI crude has broken significantly below its moving averages with sharp
The price action displays a dramatic fall from the $72-73 range to current levels around $66.20.All major moving averages have turned
downward, with prices trading well below the Bollinger Bands, suggesting extreme oversold conditions.The momentum indicator in the lower
panel shows deeply negative territory, reinforcing the strong bearish sentiment
Support levels currently appear to be forming around $66.00, with next major support potentially at the $65.00 psychological level.Impact on
Energy StocksOil-linked stocks traded mixed across global markets in response to the crude price collapse:State-run upstream oil explorers
and ONGC declined up to 6% as falling crude prices adversely impact their marginsOMC performances were mixed, with Bharat Petroleum shares
up 2.6% while Indian Oil Corporation and Hindustan Petroleum shares declinedU.S
energy sector stocks experienced significant pressure in Thursday tradingPaint, aviation, and tire stocks showed varied responses to the oil
volatile heading into the weekend
targetsEconomic data that could signal changes in oil demandPotential countermeasures from trading partners affected by U.S
tariffsAs both supply and demand uncertainties persist, traders should prepare for continued volatility in the coming sessions.
