Key Points:
- WTI crude oil futures closed at $65.89 per barrel, with a session high of $66.05 and a low of $65.28.
- Concerns over U.S. tariffs and weak Chinese economic data pressured crude prices.
- OPEC+ plans to increase production in April but may reverse if market imbalances arise.
WTI crude oil futures hovered near $65.89 per barrel on Tuesday, extending losses as global economic concerns and U.S. trade policy fueled uncertainty in the market.
Tariffs imposed and later delayed by U.S. President Donald Trump on key oil suppliers such as Canada and Mexico, alongside China’s retaliatory measures, raised fears of a global economic slowdown that could weigh on oil demand.
Additionally, concerns over China’s economic health persisted after new data showed that deflationary pressures intensified despite government stimulus efforts. As China is the world’s largest crude importer, weaker demand expectations pushed oil prices lower.
On the supply side, Russia’s Deputy Prime Minister Alexander Novak stated that OPEC+ is set to increase oil production from April. However, he emphasized that this decision could be reversed if market conditions worsen.
Technical Analysis
Crude oil is trading flat at $65.893, with the price showing little net change. The session saw a high of $66.053 and a low of $65.283, indicating a range-bound movement after recent declines. The moving averages (5, 10, 30) suggest ongoing consolidation, while the MACD shows early signs of a bullish crossover, hinting at a potential short-term recovery.
Picture: Crude oil stabilizes near $65.89 as market seeks direction, as seen on the VT Markets app
For further upside, resistance is seen at $67.671, and a break above this level could push oil toward $68.20-$68.50. On the downside, support is at $65.283, and a drop below could trigger further declines toward $64.80-$64.50. Traders should monitor OPEC+ supply decisions, U.S. inventory reports, and global demand signals, as they will influence oil price direction.
Technically, WTI crude remains under pressure, with resistance near $67.67 and support at $65.28. The MACD indicator suggests weak momentum, while the moving averages indicate further consolidation.
