WTI steadies near $60 as markets digest US-China truce, Rosneft sanctions

• WTI hovers near $60 as traders digest the outcome of the Trump-Xi meeting.
• Talks focus on a one-year trade truce and on China's imports of Russian Oil.
• US sanctions on Rosneft and Germany's debate over nationalizing its subsidiary keep market sentiment cautious.

West Texas Intermediate (WTI) US Oil gains 0.24% on Thursday, trading around $60.40 at the time of writing, as prices continue to consolidate around $60 level since Tuesday.

The meeting between US President Donald Trump and Chinese President Xi Jinping, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, resulted in a one-year truce. Washington agreed to cut tariffs on certain Chinese imports from 57% to 47%, while Beijing committed to resume purchases of US soybeans and to lift restrictions on rare-earth exports to the US. This diplomatic easing has supported the US Dollar (USD) and slightly weighed on Oil prices earlier in the day, before they recovered.

Meanwhile, US sanctions on Russian producer Rosneft have reignited tensions in Europe. In Germany, the government is considering nationalizing the company's local subsidiary, which operates a key refinery supplying most of Berlin's fuel. The US Treasury, however, granted a temporary exemption until April 2026, giving Berlin time to seek a foreign buyer.

On the monetary front, the Federal Reserve (Fed) cut its benchmark interest rate by 25 basis points on Wednesday to a range of 3.75%-4.00% and announced that Quantitative Tightening (QT) will end on December 1. Nonetheless, Fed Chair Jerome Powell struck a more hawkish tone than expected, saying that another rate cut in December is "far from a foregone conclusion." His remarks pushed US Treasury yields higher and strengthened the USD, limiting Crude Oil's upside.

Finally, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are considering a modest output increase in December, continuing their gradual monthly hikes to regain market share. This outlook, combined with the firmer USD, keeps investors cautious and maintains Oil prices close to the $60 mark.

WTI Technical Analysis: Faces key test at $60.40 resistance amid fragile rebound

WTI US Oil 4-hour chart. Source: FXStreet

WTI finds solid support around $59.50, aligning with the 100-period Simple Moving Average (SMA) on the 4-hour chart, currently near $59.37. The subsequent rebound is now attempting to break above a descending resistance line around $60.40 coming from the October 24 peak at $62.38, although a confirmed breakout is still needed before signaling stronger bullish momentum.

A decisive move above this resistance would likely reinforce the upward bias and pave the way for a test of the psychological $61.00 level. Sustained strength beyond that point could extend the recovery toward $62.00, with the next notable resistance at the October 24 high of $62.38.

On the downside, a clear break below the $59.50 support and the 100-period SMA at $59.37 would invalidate the current rebound and expose WTI to renewed downside pressure. In such a case, the next key support is seen near the October 20 low at $55.97.