Crude Oil Falls Below $60 as Trump Tariffs and OPEC Output Shock Markets…
While lower oil prices benefit consumers and reduce inflation, sustained weakness could hurt US oil producers. Companies may slow drilling, cut spending, or lay off workers—especially in energy-heavy states like Texas and New Mexico. Additionally, US energy firms face higher costs for essential materials like steel tubing, now subject to a 25% tariff. With global demand weakening and supply increasing, oil prices may remain under pressure in the near term.
Moreover, eight key OPEC+ producers agreed to raise oil output by 411,000 barrels per day starting in May, much higher than the expected 140,000-barrel increase. This decision triggered a sharp sell-off in oil markets, with Brent crude oil (BCO) dropping below $65 and WTI crude oil (CL) falling below $60 per barrel. The move reflects OPEC’s response to shifting global market conditions, including Trump’s new tariffs and US output pressure. The larger-than-expected supply increase has added bearish momentum to oil prices, intensifying volatility in the energy sector.
WTI Crude Oil (CL) Technical Analysis
Oil Daily Chart – Long-Term Breakout
The daily chart for WTI crude oil shows that the price has broken below the long-term support range of $65-$66, initiating a strong decline. Prices have also broken the triangle pattern, as indicated by the red-dotted trendline, suggesting that further downside is likely. The 50-day and 200-day SMAs remain in a negative alignment, indicating that the broader trend remains bearish. The sharp drop has pushed WTI crude into oversold territory, possibly leading to a short-term rebound.
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