Oil Prices Stabilize After Recent Sell-Off – What’s Next?

Paul-Rejczak Paul Rejczak Jun 25, 2025

WTI crude sold off from Monday’s high - is this the start of a new downtrend?

 

Crude oil closed 6.04% lower on Tuesday, following a 7.2% sell-off on Monday. The sharp decline was triggered by news of de-escalation in the Middle East. Today, prices are trading 1.0% higher, showing a slight rebound after the steep two-day drop. Currently, the market appears to be consolidating before a potential move lower, although technically, it may have found support around the previous resistance level near $65.

For oil markets specifically, these developments are worth monitoring:

  • Oil prices steadied after earlier losses as investors evaluated the Iran-Israel ceasefire and signs of strong U.S. demand.
  • Earlier price drops followed record highs after the U.S. attacked Iran's nuclear sites, prompting a temporary supply scare. However, concerns over disruptions have since eased.
  • U.S. crude inventories fell by 4.23 million barrels last week, indicating resilient domestic demand. This data came from the American Petroleum Institute.
  • Traders are eyeing potential U.S. interest rate cuts, which could boost economic activity and oil demand. Fed Chair Jerome Powell’s comments suggested a rate cut as early as July.
  • Economic data, including consumer confidence figures, pointed to possible weakness in U.S. growth. This has strengthened market expectations for Fed easing by up to 60 basis points in 2025.

 

Oil Prices Stabilize After Recent Sell-Off – What’s Next? - Image 1

 

Conclusion

Crude oil is essentially moving sideways this morning, holding near the key technical level of $65.

Volatility is likely to continue, and the market remains highly sensitive to geopolitical headlines.

For now, my short-term outlook is neutral.

Here’s the breakdown:

  • Crude oil prices sold off on signs of potential Middle East de-escalation and are now trading sideways.
  • The ongoing tariff-related volatility, combined with economic data, is adding to market uncertainty.

The full version of today’s analysis - today’s Oil Trading Alert - is bigger than what you read above, and it includes the current Crude Oil futures contract position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Oil Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Stock Trading Alerts.

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Thank you.

Paul Rejczak,
Stock Trading Strategist

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