WTI crude oil price struggles near $67.60 as tariffs and OPEC+ supply raise risk of renewed downside
WTI crude falls to $67.63 as U.S. tariffs and OPEC+ supply threaten recovery. Resistance near $70
WTI crude oil futures are trading around $67.63 on Tuesday, slipping from a two-week high as geopolitical and macroeconomic headwinds once again pressure the energy market. The decline follows the latest tariff threats by the United States and OPEC+’s announcement of a larger-than-expected production hike for August.
Highlights
- WTI trades at $67.63 as U.S. tariffs and OPEC+ hike weigh on demand-supply outlook
- Technical structure improves above EMAs but faces resistance below $70.20
- Houthi attacks in the Red Sea add geopolitical risk premium to oil markets
While technical charts indicate a short-term recovery structure, price action remains capped under a crucial mid-June breakdown level, making the current rally vulnerable to reversal.
Demand risks grow after U.S. tariff threat and OPEC+ production shift
President Trump’s move to impose new tariffs on key trading partners, including Japan and South Korea, has raised concerns about global demand. A proposed 25% levy on goods from both nations will take effect from August 1, possibly dampening economic growth across Asia. At the same time, OPEC+ agreed on Saturday to increase output by 548,000 barrels per day in August—the fourth consecutive monthly rise and one that restores nearly 80% of prior voluntary production cuts.
WTI crude oil price dynamics (Source: TradingView)
These developments have prompted many analysts to revisit concerns over a potential supply glut. However, geopolitical tensions have partly offset downside pressure. Yemen’s Houthi rebels launched a second attack on commercial vessels in the Red Sea over the weekend, stoking fears of disruptions along key shipping lanes and keeping traders alert to further escalation in the region.
Technicals hint at recovery, but macro resistance remains
Technically, WTI has reclaimed key short-term moving averages, including the 20 and 50 EMAs on the 4-hour chart, and is now hovering just below $68. Still, price remains locked beneath the $68.05–$70 resistance zone, which includes the descending trendline from April. A clean daily close above $70.20 would be required to shift the broader trend decisively in favor of the bulls. Failure to do so could see the market revisit lower support zones near $65.80 or even $60.50 if macro sentiment worsens.
Previously, we noted that WTI had formed a temporary base near $62.50 with early signs of recovery building above $66. In line with that view, price has rebounded into a supply-heavy zone. Unless $70.20 is breached, the medium-term bias remains neutral to bearish.
