WTI crude oil futures dropped to an intraday low of $74.00, before closing at $74.43, marking a significant pullback from the session high of $74.59, as traders priced in potential OPEC policy adjustments. Brent crude oil futures followed a similar trend, reflecting broader market concerns over supply management.
Oil Prices Drop After Trump’s Call for Lower Costs
The oil markets experienced significant losses after U.S. President Donald Trump stated that he plans to urge Saudi Arabia and OPEC to lower crude prices. Such comments, reminiscent of the tactics from his previous term, weighed on market sentiment and contributed to a decline in crude prices.
US President Donald Trump demanded OPEC lower oil prices and the world drop interest rates in a speech to global business and political leaders and warned them they will face tariffs if they make their products anywhere but the US https://t.co/U7g6Ch0yRqpic.twitter.com/ynEsgGzI1m
Trump’s statements have sparked concerns among traders, with expectations rising that OPEC could face diplomatic pressure to increase production.
Market participants are also considering the impact of rising U.S. crude physical stockpiles and global economic shifts, which could further suppress oil prices.
Technical Analysis: Further Weakness to be Expected
The technical picture suggests ongoing bearish momentum, with immediate support seen at $74.00. A breach below this level could lead to further declines toward $73.50.
Picture: Crude oil prices hold support near $74.00 after recent drop, as seen on the VT Markets app.
On the upside, key resistance stands at $74.75, with a stronger barrier at $75.50, which aligns with the recent trendline resistance. The bearish crossover on the MACD indicates persistent downside pressure, reinforcing the bearish outlook.
Market Outlook for the Black Gold
The oil market remains on edge as traders await further statements from OPEC and key economic data releases that could shape price direction.
Any confirmation of increased production by OPEC could lower prices, while a firm stance on maintaining current supply levels might provide temporary support.
