WTI crude oil price slips below $66 as traders weigh tariff risks and OPEC supply outlook
Oil trades at lowest level since June as bearish trend forms below key support zones
WTI crude oil price extended its decline on Wednesday, breaking below $66 and hitting its lowest level since late June amid growing concerns over global demand and rising supply risks. The benchmark U.S. oil contract last traded near $65.87, down from recent highs near $69, after a clear breakdown from an ascending parallel channel on the 2-hour chart.
Highlights
- WTI crude oil breaks below $66 amid tariff concerns and rising OPEC+ output
- Technicals turn bearish with price below all key EMAs and RSI nearing oversold
- OPEC sees demand recovery in H2 2025, but supply risks and global uncertainty persist
The move follows two consecutive days of losses as geopolitical tensions and trade-related headwinds intensify.
WTI crude oil forecast (Source: TradingView)
President Trump’s renewed tariff threats have raised fears of slower global growth, potentially denting fuel demand across major economies. Washington's plan to impose a 30% import tariff on goods from the European Union and other countries, along with a separate 10% tariff on smaller nations, has rattled investor sentiment. Meanwhile, OPEC+ continues to ramp up production, raising concerns of oversupply into the second half of the year. A small crude inventory build reported by an industry source has further clouded the near-term demand outlook.
Technical structure weakens as downside opens
Technically, oil prices have breached key support, with the loss of the $67.14 level which is aligned with the 100 EMA, signaling a shift in momentum. All major short-term EMAs are sloping downward, with price action forming a sequence of lower highs and lower lows. RSI is trending toward oversold territory at 40.92, suggesting momentum remains with the bears. Immediate support is seen at $64.50, followed by $63.90, while any recovery will face resistance around $66.70–$67.20.
Despite the pullback, some fundamental support persists. OPEC’s latest report projects stronger global growth in the second half of 2025, with increased fuel demand led by India, China, and Brazil. In the United States, summer travel and low diesel inventories are helping cushion the downside. A drone strike in northern Iraq that halted operations at DNO ASA added a geopolitical layer to supply dynamics.
Earlier forecasts pointed to bullish continuation as long as WTI held above channel support. The current breakdown now confirms a near-term bearish structure, with traders watching for a reclaim of $67.24 to neutralize further losses.
