US Oil Drops Toward $56-$41 Range, But Support Still Missing

US Oil is sliding into what looks like a sweet spot between $56 and $41—levels where airlines typically start locking in fuel prices. But here's the catch: it's trading below key long-term averages, and there's no floor in sight yet.

⬤ US Oil is taking a beating right now, trading way below its 200-week and 200-month moving averages. It's getting close to that $56-$41 zone that traders have been watching—basically the range where airlines usually jump in to hedge their fuel costs before prices potentially bounce back.

⬤ Here's the problem though: even with prices looking attractive on paper, there's no real support holding things up. That means oil could keep sliding before it actually hits bottom. Just because something looks cheap doesn't mean it can't get cheaper.

Oil Market Faces Record Supply Surge as Prices Slide Toward $60

More than one billion barrels of crude are now stored on the world's tanker fleet - the largest oil flotilla since 2020 - signaling a global oversupply that could keep prices under pressure.

⬤ Sure, these levels seem like a bargain from a technical standpoint, and buyers might start showing interest if things stabilize. But without strong support underneath, nobody's really sure where this thing lands. The uncertainty makes it tricky for anyone trying to time the market right now.

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Saad Ullah E-mail Twitter Facebook

Saad is an engineer with more than a decade of experience in FMCG companies. He loves to write about innovative tech and blockchain.