Oil Prices Struggle Amidst Tariff Uncertainties – What Does This Mean for Your Investments?

As uncertainties around tariffs and their impact on global demand continue to loom, oil prices are finding it difficult to gain bullish traction. President Trump’s recent comments about lowering prices have also put OPEC in a tough spot.

Libya Supply Concerns Eased

Protests in Libya threatened to block crude oil exports, causing concerns in the market. However, these fears were alleviated as the State Oil company managed to resolve the issue with protesters, and exports returned to normal.

Tariff Threats Support Crude Oil Prices – But at What Cost?

With tariff threats escalating, markets are anticipating a 25% tariff on goods from Canada and Mexico by President Trump. This move could potentially make crude oil more expensive, impacting not only oil but also refined products like gasoline.

Despite some back and forth between Trump and Treasury Secretary Bessent on the tariff issue, the uncertainty surrounding tariffs is adding to market participants’ concerns. This situation is akin to a double-edged sword, with the potential for both negative and positive impacts on global growth and oil prices.

US Inventories Rise

US crude inventories saw a significant increase, but this was offset by a rise in total US oil demand. Looking ahead, the focus remains on the tariff landscape and geopolitical risks as key factors influencing oil prices.

Technical Analysis – Brent Crude

From a technical standpoint, Brent Crude has found support at a key level, indicating potential bullish momentum. A double bottom pattern at the support level suggests a possible uptrend towards the $80 per barrel mark.

However, the divergence between fundamental and technical outlooks adds to the complexity for market participants. Clear resolution on tariff issues may provide a clearer path forward for oil prices.

Support: 76.35, 75.00, 72.38

Resistance: 78.97, 80.00, 81.58

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