WTI crude oil is trending lower on its 1-hour chart, as price formed lower highs connected by a falling trend line. Applying the Fibonacci retracement tool shows areas where sellers might be waiting to join in.

The 61.8% level is in line with the trend line around $68.26 per barrel then the 50% level is at $67.64 per barrel. Price is already testing the 38.2% Fib at $67 per barrel. If any of these Fibs hold as resistance, crude oil could slump back to the swing low at $65 per barrel or lower.

The 100 SMA lines up with the 61.8% Fib to add to its strength as resistance, and it is also below the 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.

Stochastic is already indicating overbought conditions or exhaustion among buyers, so turning lower would mean that sellers are taking over. RSI has more room to climb before reaching the overbought zone, so the correction could keep going until it does.

Crude oil is under downside pressure since the OPEC+ already agreed to boost production from August to December by 400K barrels per day.

This comes even as more nations are struggling to keep the Delta variant by spreading, leading to extended lockdown measures that cripple business and consumer activity. In turn, this leads to weaker demand for fuel commodities.

The upcoming inventory reports from the API and EIA would likely shed more light on supply and demand conditions, as another large build in stockpiles would confirm lower purchases.

The OPEC-JMMC will be having another meeting this week to reassess the output agreement and current global conditions, possibly leading to recommendations for adjustments. Still, the lack of any push to curb output might prove bearish for the commodity.