WTI crude oil price slips near $66 as trendline rejection and tariff risk dampen outlook
WTI crude oil tests $66 as sellers defend trendline and global trade risks escalate
WTI crude oil futures remained under pressure on Tuesday, trading near $66.40 per barrel, as renewed global tariff threats and geopolitical developments weighed heavily on investor sentiment. The decline extended Monday’s losses, driven by a combination of easing supply concerns and fresh downside catalysts.
Highlights
- WTI crude oil falls to $66.40 as ceasefire proposal eases near-term supply fears
- Trump announces 30% EU and Mexico tariffs, raising demand-side pressure
- Key technical support at $65.50 under threat, with bears eyeing a move toward $63.50
President Donald Trump issued Russia a 50-day ceasefire deadline, warning of 100% tariffs if the Ukraine war is not halted. The shift lowered expectations of immediate supply shocks from sanctions, leading to softer prices.
USOIL price dynamics (Source: TradingView)
Simultaneously, Trump's new 30% tariffs on goods from the European Union and Mexico, set to begin August 1, added pressure to the global demand outlook. Investors fear that these measures, along with broader trade tensions, may slow economic activity and reduce energy consumption, particularly in emerging markets and manufacturing-heavy economies.
Technical structure favors bears below descending resistance
Technically, WTI crude oil price remains capped beneath a dominant descending trendline, with multiple rejections between $74 and $76 reinforcing bearish control. After failing to sustain its recent rally, the price retreated back below the 200 EMA and is now testing the key $66–$65.50 support zone. This area is backed by the convergence of major moving averages, which now cluster around $66, indicating a zone of short-term indecision.
A confirmed break below $65 would likely expose downside targets at $63.50 and possibly $60. On the upside, bulls must reclaim $70 and decisively clear the long-term descending trendline to reverse the bearish structure. Until then, rallies remain susceptible to selling pressure, particularly near prior supply zones and EMA confluences.
In our earlier outlooks, we identified the $74–$76 region as a major technical ceiling. Tuesday’s rejection once again confirms that WTI price lacks bullish momentum without a decisive breakout above trendline resistance. The current structure supports a cautious stance as traders await further confirmation from global risk events.
