West Texas Intermediate (WTI) crude oil extended its rebound on Friday, climbing around 0.65% to trade near $60.50 per barrel. The uptick comes as the broader energy market stages a modest recovery following two sessions of sluggish movement.
Despite this short-term rise, the oil market remains weighed down by ongoing oversupply worries and cautious sentiment ahead of the upcoming OPEC+ meeting, where members are reportedly considering a modest production increase.
According to industry sources, OPEC+ may raise output by about 137,000 barrels per day (bpd) in December as part of efforts to reclaim market share lost during recent production cuts. Meanwhile, U.S. crude output has reached a record 13.6 million bpd, and Saudi exports have surged to a six-month high — both developments that continue to limit upside momentum in oil prices.
Even with fresh U.S. sanctions targeting Russian producers, Russian oil exports remain resilient. Reports suggest that India’s refiners continue to purchase Russian crude through non-sanctioned channels, keeping the global supply picture relatively loose.
On the geopolitical front, recent remarks from Washington about China agreeing to buy more U.S. energy have offered mild support to sentiment. Still, analysts doubt whether the move will meaningfully boost Chinese demand or shift the broader market balance.
Technical Outlook: Bulls Test Key Resistance
From a technical standpoint, WTI continues to find strong support around the $59.50 level, which aligns with the current position of the 20-day moving average. The market has recently broken above its short-term descending resistance line, hinting at a potential bullish reversal.
However, momentum appears to be stalling near $61.17, and traders will be watching closely for a breakout above that point to confirm renewed upward traction. A successful push could open the door toward the $62.00 psychological barrier and possibly the late-October high near $62.38.
On the flip side, a fall below $59.50 would likely bring sellers back into play, exposing WTI to fresh downside risks toward the $56.00 zone.
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