WTI Crude Falls Below $65.50 Amid Tariff & Demand Worries
WTI crude slips below $65.50 amid escalating trade tensions and growing demand worries.
FUNDAMENTAL OVERVIEW:
West Texas Intermediate (WTI) crude extended losses for a third straight session, hovering near $65.50 during Tuesday’s European session. The decline was driven by persistent trade tensions that have heightened concerns over global oil demand.
Traders remain cautious ahead of the August 1 deadline set by U.S. President Donald Trump for potential tariffs on the EU. Hopes for a last-minute agreement remain, but progress appears limited. Trump has threatened a 30% tariff on EU exports, prompting the bloc to explore broader retaliatory measures, according to EU diplomats cited by Reuters.
On the supply side, bearish pressures persist as output from key producers rises. The Joint Organizations Data Initiative revealed Saudi Arabia’s crude exports in May climbed to a three-month high.
Further easing of supply risks came after a June 24 ceasefire ended hostilities between Israel and Iran. Additionally, Iran announced plans to restart nuclear talks with European nations, seeking to revive the 2015 nuclear deal and avoid new international sanctions.
CRUDE OIL TECHNICAL ANALYSIS DAILY 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 Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 66.60
Immediate support level: 64.00
HOW TO TRADE CRUDE OIL
On the higher time frame, Crude Oil initially rebounded after a downward trend, finding support and briefly rallying to the upside. However, the momentum was short-lived as the price sharply reversed, wiping out all gains. Currently, Crude has broken below its previous day’s low and key support zone. If it continues to trade beneath this level, further downside toward a major support area remains likely.
