Technical indicators show that crude oil has fallen into oversold territory, causing oil prices to rebound from a four-year low.

After a technical indicator showed a recent excessive drop, oil prices rebounded from their lowest closing levels in four years. Brent crude climbed to around $61 per barrel after dropping nearly 10% in the past six trading days, while WTI crude rose to around $58 per barrel. According to the Relative Strength Index on the 9th, both benchmark crudes recently fell into oversold territory. As of writing, Brent crude futures for July rose 1.2% to $60.93 per barrel, while WTI crude futures for June rose 1.3% to $57.85 per barrel. OPEC+ agreed over the weekend to further increase supply starting in June, causing oil prices to fall on Monday. Saudi Arabia warned that if over-producing member countries did not comply with the production cut agreement, they would increase output further. Trade tensions between the world's two largest economies threatening global economic growth have heightened bearish pressure on futures. Meanwhile, U.S. President Trump stated that he is willing to lower tariffs on China at some point because the current tariffs are too high and impacting trade between the two nations. Warren Patterson, head of commodity strategy at ING, stated: "Oil prices are benefiting from a relief rebound, possibly due to the return of China from the holidays and renewed hope for trade negotiations. However, with continued demand uncertainty and shifts in OPEC+ policy, risks still lean towards the downside." There are temporary signs of weakness in the Middle East oil market, with several price indicators softening in recent trading days. The premiums of Oman and Murban relative to the regional benchmark Dubai crude have narrowed.