Analysis of crude oil after tariffs and waiting for OPEC+ decision

At the economic level

Oil prices fell on Tuesday near the levels of USD 60 per barrel, as oil prices fell this week to their lowest level since April 2021, as fears of a worsening trade war between the United States and China shook the markets and weighed on the global demand outlook.

President Trump has threatened to impose additional 50% tariffs on Chinese imports, on top of the current tariffs, while Beijing has vowed to fight to the end.

Chinese buyers are expected to stop their purchases of US crude oil and turn to supplies from Russia, the Middle East and Africa.

Meanwhile, the European Union is considering taking a whole range of retaliatory measures in response to US tariffs, further clouding the prospects for global trade and energy.

On the other hand, there have been reports that OPEC may decide to suspend or even cancel planned production increases if oil prices continue to fall.

At the technical level

Oil prices are trading inside a falling price channel on the weekly frame, as oil prices last week fell strongly by more than 10 dollars per barrel, breaking the support levels of 66 dollars.

The levels of 65 to 66 dollars per barrel are now considered the strongest resistance levels, which in the event that oil makes some corrective ascent, these areas will be the best selling areas.

At that time, we are targeting the lower boundary levels of the descending price channel near the levels of 53 to 52 dollars per barrel during the coming period.