WTI Price Forecast: Languishes near $61.50 support zone; seems vulnerable

• WTI retains negative bias for the third straight day amid US shutdown-led fuel demand concerns.
• The OPEC+ denies speculation of increasing Oil production, though it does little to lend any support.
• The technical setup favors bearish traders and backs the case for a further depreciating move.

West Texas Intermediate (WTI) US Crude Oil prices extend last week's retracement slide from the $66.20 region, or the highest level since August 4, and drift lower for the fourth successive day on Wednesday. The commodity slides to an over one-week low, around the $61.85-$61.80 region during the first half of the European session, though it lacks follow-through selling.

Concerns that a prolonged US government shutdown could have an adverse effect on the economy and dent fuel demand, which turns out to be a key factor weighing on Crude Oil prices. Meanwhile, the OPEC+ denied speculation regarding a hike in Oil production in its upcoming meeting on Sunday, which, in turn, could offers support to the black liquid and help limit any further losses.

From a technical perspective, last week's failure near the 200-day Exponential Moving Average (EMA) and the subsequent fall could be seen as a key trigger for bearish traders. Moreover, oscillators on the daily chart have again started gaining negative traction and validate the negative outlook, suggesting that the path of least resistance for Crude Oil prices is to the downside.

Some follow-through selling below the $61.50-$61.30 area, or a multi-month low touched in September, should pave the way for deeper losses. Crude Oil prices might then accelerate the fall below the $61.00 mark, towards testing an intermediate support near the $60.40-$60.30 intermediate support en route to the late May swing low, around the $60.00 psychological mark.

On the flip side, any meaningful recovery attempt beyond the $62.00 mark now seems to confront an immediate hurdle near the daily top, around the $62.65-$62.70 region. A sustained strength beyond could trigger a short-covering move and lift Crude Oil prices beyond the $63.00 round figure, towards the $63.60-$63.65 hurdle en route to the $64.00 mark and the $64.25 region.

WTI daily chart