Oil prices decline amid persistent demand concerns fuelled by ongoing trade uncertainty.
FUNDAMENTAL OVERVIEW:
Oil prices declined on Tuesday as lingering uncertainty surrounding U.S. trade tariffs weighed on the economic outlook and heightened concerns about weakening demand.
Oil prices have seen sharp declines in 2025, recently hitting their lowest levels in over four years amid growing concerns that escalating global trade disruptions will suppress demand.
Tensions remain high between top oil consumers—the U.S. and China—with little progress toward resolving their ongoing trade war. Meanwhile, U.S. President Donald Trump appears poised to introduce broader tariffs, further unsettling markets.
Even reports suggesting Trump may ease the impact of his proposed automotive tariffs, such as one from the Wall Street Journal, offered minimal reassurance.
Mounting fears of weakening demand, coupled with deepening economic uncertainty, have continued to weigh heavily on oil prices in recent months.
Investors are preparing for a pivotal week filled with key U.S. economic data releases, including the Federal Reserve’s preferred inflation measure—the PCE price index—and the closely watched monthly jobs report.
The crude market is facing additional pressure from expectations of increased supply arriving next month.
OPEC+ is set to meet next week, with widespread anticipation that the group will raise production for a second straight month.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Selling Zone, while the Stochastic oscillator suggests a Negative trend.
Immediate Resistance level: 62.06
Immediate support level: 60.71
HOW TO TRADE CRUDE OIL
After a prolonged decline, crude oil briefly found support and attempted an upward reversal. However, the rebound was short-lived as prices failed to break through the resistance zone and turned lower again. The commodity has now broken its support level and is trending downward, with a potential pullback expected before further declines.