WTI Price Forecast: Vulnerable Below $80.00 After Breaking 50% Fibonacci Level

During Wednesday's Asian session, WTI crude oil futures extended their weakness, trading near $80.32, after touching a nearly two-week low intraday. Prices had previously broken below the key technical support of the 50% Fibonacci retracement level, shifting the short-term technical outlook to the downside.

**Technical Supports Consecutively Lost**

Recent price action has formed a descending channel pattern, reinforcing the bearish bias. After breaking below the 50% Fibonacci retracement level, this position has now turned into resistance, capping any intraday rebound attempts. Should selling pressure persist, the next support zone to watch lies near $76.10. According to market analysis, this area had served as support earlier this year but has recently been breached and now acts as resistance; oil prices need to reclaim and hold above this level to improve the short-term technical outlook.

**Demand Concerns Intertwined with Supply Expectations**

Despite support for fuel demand from the U.S. summer driving season and potential new demand from countries replenishing strategic reserves, concerns over sluggish global economic growth continue to dominate sentiment. Even as OPEC members gradually ramp up production, seasonal gasoline demand helps draw down inventories, yet oil prices remain under pressure overall amid supply worries and uncertain demand prospects. Analysts note that if third-quarter demand remains robust while producer output recovery falls short of expectations, the downside process for oil prices could be more moderate rather than a sharp plunge.

**Geopolitical Risks May Trigger Corrective Rebound**

Momentum indicators are increasingly tilted to the downside, but several consecutive weeks of declines have also raised the possibility of a corrective rebound. Should geopolitical tensions re-escalate, particularly threatening key strategic chokepoints such as the Strait of Hormuz, this could provide a short-term boost to oil prices. However, until prices break and hold above the $80.00 mark, the bearish technical pattern is unlikely to be fundamentally reversed.