Key Points:
- CL-OIL (WTI crude) rises by $0.23, or 0.37%, to $61.81 per barrel.
- Brent crude prices see a modest gain of 12 cents to $65 per barrel.
- Tariff exemptions and strong Chinese oil imports help support prices.
- Geopolitical risks and U.S.-China trade uncertainty continue to influence market sentiment.
CL-OIL Prices Move Higher on Trade Relief and Strong Demand from China
Oil prices showed moderate gains on Tuesday, with CL-OIL (WTI) rising by $0.23 (0.37%) to $61.81 per barrel, while Brent crude futures increased by 12 cents to $65 per barrel.
The upward movement came amid tariff exemptions announced by U.S. President Donald Trump and a strong rebound in China’s crude oil imports, indicating resilient demand despite ongoing geopolitical risks.
Trump’s Tariff Exemptions Providing Temporary Relief
The recent tariff exemptions on electronics from China provided CL-OIL with some relief, lifting sentiment in the short term. While U.S. trade policy remains unpredictable, and uncertainties persist regarding future tariff announcements, the relief on electronic goods may help prevent further downside in oil prices. However, market participants continue to monitor any developments in Trump’s tariff strategy, as further changes could have implications for global demand and oil prices.
China’s Strong Crude Oil Imports Support CL-OIL Prices
The surge in China’s crude oil imports, up by 5% in March, provided additional support for CL-OIL prices. Iranian oil imports, which increased in March, were particularly notable as traders adjusted their positions ahead of tighter U.S. sanctions on Iranian exports. The rebound in demand from China, the world’s largest oil importer, suggests strength in global oil consumption.
Geopolitical Risks and U.S.-Iran Tensions Influence CL-OIL
In addition to trade uncertainty, geopolitical risks, especially U.S.-Iran tensions, continue to weigh on the market.
The U.S. administration is actively working to reduce Iran’s oil exports, and these ongoing tensions have added supply risk to the market, keeping CL-OIL prices supported.
Technical Outlook for CL-OIL Prices
Picture: CL-Oil tests resistance at 61.860 after a steady rally from 59.98, as seen on the VT Markets app.
CL-Oil increased by 0.37%, closing at 61.810 after opening at 61.582. The price saw a steady rise, reaching a high of 61.860 before retracing slightly to close near 61.810.
The moving averages (MA 5,10,30) indicate a bullish momentum, with the shorter-term moving averages crossing above the longer-term ones. This suggests potential for continued upward movement. The MACD (12,26,9) confirms this trend, showing a positive histogram as the MACD line (blue) moves above the signal line (yellow).
Key levels to monitor include 61.860 as immediate resistance and 59.98 as support. A break above resistance could suggest further upside momentum, while a drop below support could indicate a bearish reversal.
While CL-OIL has seen short-term gains, the outlook remains uncertain. In the short term, strong demand from China and tariff exemptions may provide support, but ongoing risks such as U.S.-China trade negotiations and geopolitical instability could create volatility in oil prices.
