WTI Crude Oil at Critical Support: Breakdown Risks Deeper Losses

WTI crude oil futures are trading near a crucial support level at $77 per barrel. Technical analysts warn that if this zone is broken, it could lead to deeper losses.

The $77 mark has emerged as a key technical support after previously acting as both resistance and support over the past several months. If buyers fail to defend this level, prices may drop towards the next support area near $74.50, which aligns with a Fibonacci retracement of the recent upswing.

Market context is complex, with global supply concerns and demand worries persisting. The US dollar's strength remains a headwind, making dollar-denominated commodities like oil more expensive for holders of other currencies.