Oil Prices Dip: Easing Tensions and Rising Inventories Weigh

Crude oil prices showed a minor decline amid easing Middle East. It hits a low of  $60.21 at the time of writing  and currently trading around $60.60.

The EIA Crude Oil Inventories report from May 21, 2025, indicated a 1.3 million barrel increase in U.S. crude oil inventories, reaching 443.2 million barrels, contrary to expectations of a decline, though inventories remain below the five-year average and year-ago levels. Gasoline and distillate inventories also rose, while refinery crude inputs averaged 16.5 million barrels per day with a 90.7% utilization rate. Overall product demand for the past four weeks averaged 19.6 million barrels per day, down 2.8% year-over-year, with gasoline and distillate demand declining, but jet fuel demand increasing by 4%.

Recent declines in crude oil prices have been caused by easing geopolitical tensions and increased output from OPEC+, with Saudi Arabia leading the way by increasing output by 411,000 barrels per day starting June 2025. Due to the easing of tensions, as well as higher production and weaker demand in Europe and Asia amid global economic uncertainty, Brent crude prices have fallen to around $60.23 per barrel by early May 2025.

Price Resistance and Support Levels

The near-term resistance is around $61.75; any breach above this level could push prices higher to $62.25/$63/ $64.15/$65/$66. On the downside, immediate support is at $62.40 violation below targets  $62/$61.60/$60.

 It is good to sell on rallies around $61.75 with a stop-loss of around $63 and a target price of $57.65.