Oil Set for Biggest Weekly Drop Since June on Tariff Woes
Oil poised for its biggest weekly drop since June.
FUNDAMENTAL OVERVIEW:
Oil prices edged higher on Friday but were set for their steepest weekly losses since late June, pressured by tariff-driven economic concerns and news of a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
Brent crude was poised to fall 3.9% for the week, while WTI was on track for a 4.5% weekly decline.
New U.S. tariffs on several trade partners took effect on Thursday, fueling worries about economic growth and crude demand amid a softer-than-expected U.S. labor market.
The Kremlin announced that Trump and Putin are scheduled to meet soon—the first summit between the two leaders since 2021—adding uncertainty as trade tensions with Russia’s oil buyers escalate. Trump also indicated that China, Russia’s largest crude customer, could face tariffs similar to those imposed on India.
This potential summit could influence tariffs related to Russian crude, contributing further to WTI’s downward pressure.
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 the Neutral Zone, while the Stochastic oscillator suggests a Neutral trend.
Immediate Resistance level: 66.60
Immediate support level: 63.78
HOW TO TRADE CRUDE OIL
After a notable rally, Crude Oil sharply reversed course. It has since struggled to maintain any upside momentum, encountering robust resistance that has pushed prices lower. The asset has now fallen below a critical support zone and is currently retesting it. Should this retest result in a rejection, Crude Oil is poised for further decline.