• WTI consolidates the overnight slump to the lowest level since early May.
• A sustained break below $67.00 should pave the way for additional losses.
• Attempted recovery might confront stiff resistance near the $68.00 mark.

Western Texas Intermediate (WTI) Crude Oil prices enter a bearish consolidation phase during the Asian session on Tuesday and oscillate in a narrow band near the lowest level since early May touched the previous day. The commodity remains on the defensive for the fourth straight day and currently trades just below the mid-$67.00s, down less than 0.20% for the day.

Investors remain worried that a global economic slowdown, particularly in China, will dent fuel demand. Moreover, the 
Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) are expected to cut demand forecasts in their respective market updates on Tuesday. This continues to weigh on Crude Oil prices ahead of the crucial US CPI report, which might influence the Fed's policy outlook and drive the US Dollar (USD) price dynamics.

From a technical perspective, a sustained break and acceptance below the $67.00 mark will confirm a fresh bearish breakdown for Crude Oil prices. The black liquid might then accelerate the slide towards the $66.55 intermediate support before eventually dropping to the $66.00 round figure. The downward trajectory could get extended further towards sub-$66.00 levels en route to the $65.45 area, the $65.00 psychological mark and the $64.40-$64.30 region, or the YTD low touched in May.

On the flip side, any attempted recovery might now confront some resistance near the $68.00 round figure, above which a bout of a short-covering has the potential to lift Crude Oil prices to the $68.50-$68.55 resistance zone. Some follow-through buying could pave the way for an additional recovery towards the $69.00 mark. The black liquid could eventually climb further beyond the $69.40-$69.45 region, towards reclaiming the $70.00 psychological mark.

WTI daily chart

Key levels to watch