WTI price struggles near $72 as tariff delay offsets supply concerns
WTI crude hovers near $72.00, with bearish technical signals limiting upside potential
West Texas Intermediate (WTI) crude oil prices declined for the second consecutive session on Tuesday, hovering near $72 amid easing supply fears after US President Donald Trump postponed tariffs on Canada and Mexico. The delay eased concerns over immediate supply disruptions, but persistent demand uncertainty and technical pressures kept oil under selling pressure.
While Trump’s tariff delay has eased immediate supply fears, broader concerns over weaker fuel demand persist. The OPEC+ decision to maintain production limits may provide some support, but oil remains vulnerable to further downside if global demand weakens.
For now, traders are closely watching the 100-day SMA at $71.00. A break below could trigger deeper losses toward $69.42, while a rebound above $73.18 is needed to shift momentum back in favor of the bulls.
USOIL price dynamics (Dec 2024 - Feb 2025) Source: TradingView.
Trump delays tariffs but demand risks remain
Crude oil prices initially faced selling pressure after Trump announced a 30-day postponement of tariffs on Canadian and Mexican imports. The decision reduced immediate supply concerns, as both Canada and Mexico are among the largest oil suppliers to the United States. However, broader worries about weaker fuel demand weighed on oil, as Trump’s protectionist policies are expected to slow global economic growth.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) rejected Trump’s calls to increase production and opted to maintain their gradual phase-out of output cuts. This move offered some support to oil prices, preventing a deeper decline. However, analysts remain cautious, awaiting a potential break below the 100-day Simple Moving Average (SMA) at $71.00, which could signal further downside.
Technical analysis: Key levels to watch
WTI is currently trading near $71.87, struggling below key technical levels. The 50-EMA at $73.16 and the 200-EMA at $74.13 continue to act as resistance, reinforcing a bearish sentiment. Immediate resistance is seen at $74.53, and a break above $75.83 could shift sentiment toward a bullish reversal.
On the downside, support is holding at $70.64, while the next key level at $69.42 could be tested if selling pressure increases. The downward trendline remains intact, suggesting continued weakness unless WTI reclaims $73.18, signaling a shift in market sentiment.
Previously discussed levels near $71.00 remain critical, with oil reacting to both tariff developments and demand expectations in the coming sessions
