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West Texas Intermediate (WTI) Crude Oil comes under heavy selling pressure on Thursday, sliding to a four-month low with prices down over 2.0% at the time of writing. The US benchmark is trading around $60.33, extending losses for the fifth straight day after peaking at $66.19 last Friday, the highest level since August 4.

The selloff is being driven by growing concerns over a supply glut, with expectations that the Organization of the Petroleum Exporting Countries and allies (OPEC+) may approve additional output increases at its upcoming meeting. Reports that Saudi Arabia could lift production to defend market share have intensified bearish sentiment, keeping upward momentum firmly capped.

Meanwhile, the latest Energy Information Administration (EIA) report revealed larger-than-expected builds in US crude and fuel inventories, reinforcing worries that demand is softening even as supply climbs.

On the demand side, macroeconomic headwinds are weighing heavily on sentiment. Sluggish industrial activity in China, uncertainty surrounding the United States (US) government shutdown, and broad signs of weaker global growth are dampening the outlook for Oil consumption.

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From a technical perspective, WTI has slipped below the key $61.50 support zone that had held firm since early August. The commodity now trades beneath the 21, 50 and 100-day Simple Moving Averages (SMAs), reinforcing the bearish structure on the daily chart.

The next line of defense is seen near $59.50, which aligns closely with the May 30 swing low at $59.39. A break below this level could open the door toward the May 8 trough at $57.47.

On the upside, $61.50 now acts as immediate resistance, and a daily close back above this barrier is required to signal a potential bullish revival. Even then, a cluster of moving averages around $63.00-64.50 is likely to cap recoveries, keeping the broader bias tilted to the downside.

Momentum indicators echo the bearish outlook. The Relative Strength Index (RSI) hovers near 37, edging closer to oversold territory. At the same time, the Moving Average Convergence Divergence (MACD) shows a bearish crossover below the zero line, underscoring weakening momentum and confirming that sellers remain in control.

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