WTI Crude Oil dips below $60as Gaza peace deal eases geopolitical risk

• WTI Crude Oil extends losses for the second day, briefly slipping to a five-month low on Friday.
• Risk premiums ease as Israel and Hamas approve the first phase of the Gaza peace deal.
• Bearish momentum remains intact on the daily chart, with WTI trading below key moving averages.

West Texas Intermediate (WTI) Crude Oil extends its slide for the second consecutive day on Friday, giving up all gains recorded earlier in the week as selling pressure intensified. At the time of writing, WTI trades around $59.80 after briefly slipping to its lowest level since May 8, around $59.21, losing more than 2.0% on the day.

The US benchmark is set for a second weekly decline as geopolitical risk premiums unwind following Israel and Hamas' formal approval of the initial phase of the Gaza peace plan, under which Israel will start withdrawing troops while Hamas releases the remaining hostages.

From a technical standpoint, the bias remains firmly bearish. Prices are holding below the 21, 50 and 100-day Simple Moving Averages (SMAs), all of which are now clustered in the $62.50-$64.50 zone, reinforcing a ceiling for near-term recoveries. The Relative Strength Index (RSI) hovers near 35, indicating that bearish momentum is strong but not yet oversold, leaving room for further downside.

Immediate support lies at $59.50. A decisive break below this zone would expose the May 8 swing low at $57.47, followed by this year's trough near $55.00. On the upside, WTI faces initial resistance at the psychological $60.00 handle, where sellers are expected to cap intraday rebounds. A move beyond that could open a corrective path toward $61.50, though upside attempts may remain short-lived as long as prices stay below the key moving averages.

Overall, the broader setup continues to favor sellers, with the market structure pointing to lower highs and lower lows and momentum indicators confirming a sustained bearish bias. Unless WTI reclaims the mid-$62 zone with strong follow-through, the path of least resistance remains to the downside.