Crude oil prices have settled at $60.70, marking a decrease of $1.29 or -2.08%. This level represents the lowest price since April 2021.
Following Trump’s announcement on April 2 regarding tariffs, oil prices have fallen by 20%, raising concerns over economic growth and inflation.
Opec Plus Production Cuts
OPEC+ will expedite the rollback of production cuts, adding 411,000 barrels per day to the market next month, contributing to the price drop.
The crude oil price has fallen below its 50% midpoint at $64.71, indicating that sellers remain dominant. A low of $58.97 was recorded today, and going below this could trigger additional selling pressure.
The article outlines a distinct downturn in crude oil prices, now resting at $60.70—down $1.29 for the day. This marks a drop of more than 2%, and notably it’s the weakest recorded level since April 2021. The descent has persisted steadily, with a total contraction of 20% since the announcement on April 2, a move that disrupted market expectations.
Trump’s declaration regarding tariffs appears to have introduced broader concerns. Not only is it weighing on raw commodity prices, but it also reflects the market’s worry that global consumption might decline. When tariffs enter the frame, the reaction is often immediate and rooted in expectations of reduced trade, a lower pace of manufacturing growth, and a more challenging inflationary environment. This time has been no different. Consequently, oil has become cheaper, in anticipation of slackened demand.
At the same time, the announcement by OPEC+ cannot be overstated in its influence on pricing. Increasing supply by an estimated 411,000 barrels per day starting next month effectively sends a message that production concerns are no longer limiting, at least from their end. Markets have interpreted this loosening as bearish, particularly with global demand already under pressure. We’ve seen this play out before; when supply adds up while demand remains uncertain or wobbly, prices usually meet resistance.
Technical Analysis And Market Impact
Another technical point emerges around key levels on the chart. With the 50% retracement from the previous major upside move situated at $64.71, and current price levels well below that, sellers’ control is clearly intact. Today’s session saw buyers briefly losing further ground, dipping toward $58.97. This appears to be a pivot area, where another firm close below that price would not just confirm weakening confidence—it would likely bring in further momentum-based selling. Price breaks through such floors invite volume, and that volume doesn’t always wait.
From our perspective, this kind of price structure often signals that traders will maintain a defensive posture until either fresh headlines reverse expectations or technical readings show exhaustion in the move. Approaching key zones like $58.97 with care makes sense. Any movement through the downside target may bring wider stops into play and push momentum risk higher in short bursts.
We interpret the reaction to production policy changes and tariff-based economic jitters as a direct reflection of forward-looking sentiment. There’s little here that feels temporary. With headline risk still in play from both policy makers and players in the supply chain, focus turns to rate-of-change. That is, how quickly sentiment shifts, and how committed large positions seem to be, given trading volumes in this region.
Expect rally attempts to encounter resistance quickly. Bounces are more likely to be short-lived or shallow unless met by unexpected statements or shifts in broader economic data—neither of which are predictable.
