Trade tensions drive oil prices downward

USOIL

Oil is trading below the resistance zone of $62.50, and prices are likely to move sideways between the mentioned resistance zone and the support zone of $59.25 during today’s trading.

Global oil markets have witnessed sharp fluctuations in recent days, as prices dropped to their lowest levels in four years due to escalating trade tensions between the United States and China. Brent crude fell below $60 per barrel for the first time since February 2021, driven by fears of a global economic recession resulting from the intensifying trade war.

However, oil prices experienced a significant rebound after U.S. President Donald Trump announced a 90-day suspension of tariffs on several countries, with the exception of China, which remains subject to tariffs of 125%. This announcement led to a 4.2% increase in Brent crude, reaching $65.48 per barrel, while West Texas Intermediate (WTI) rose by 4.6% to $62.35 per barrel.

In light of these developments, investors are advised to closely monitor geopolitical and trade developments, as tensions between the United States and China continue to cast a shadow over global oil demand forecasts. It is also recommended to follow key technical indicators to identify appropriate market entry and exit points.

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