CL New York Oil Futures – Tariffs spark concerns about slowing demand, oil prices continue to be constrained

Oil prices steadied slightly on Tuesday, helped by a weaker dollar, but gains were capped by growing concerns about a slowing U.S. economy and the impact of tariffs on global growth. U.S. West Texas Intermediate (WTI) crude futures rose 22 cents, or 0.3%, to $66.25 a barrel. Oil prices pared some gains after U.S. President Donald Trump said on Tuesday he had directed his commerce secretary to impose an additional 25% tariff on all steel and aluminum imports from Canada, bringing the total tariff on those products to 50%. On the supply side, the U.S. Energy Information Administration said on Tuesday that U.S. crude oil and natural gas production, as well as natural gas and electricity demand, will all hit record highs in 2025. Investors are awaiting U.S. inflation data due on Wednesday for clues on the direction of interest rates.

As can be seen from the technical chart, the RSI and stochastic index are recovering from the oversold area, indicating that the decline in oil prices may be limited. The current support level is estimated at $65 and $63.60, and the larger support is expected to extend to $62.40 to $61.70, with the key level pointing directly to the 60 mark. The resistance level is first at the 10-day moving average of $67.60, and the next level is at the 25-day moving average of $69.70 to $72.80.

Estimated range:
Resistance 67.60 – 69.70 – 72.80
Support 65.00 – 63.60 – 62.40 – 61.70

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