Crude Prices Ease as Traders Weigh Supply Constraints Against Growth Risks

Crude Prices Ease as Traders Weigh Supply Constraints Against Growth Risks

Oil prices pulled back slightly after a sharp rally, as traders weighed tight U.S. fuel inventories against mounting concerns over global economic headwinds. Gasoline stockpiles plunged by 5.7 million barrels well beyond market expectations fueling optimism for stronger seasonal demand. However, persistent geopolitical tensions and trade policy uncertainties have tempered investor sentiment, keeping volatility elevated.

OPEC+ Faces Compliance Challenges Amid Strong Demand

Production compliance remains a challenge for OPEC+ as crude output from key producers continues to rise, complicating the cartel’s supply management efforts. Analysts highlight that global oil demand remains robust, averaging 102.2 million barrels per day, but looming economic risks and evolving trade policies could weigh on future price momentum. Markets now turn their focus to upcoming supply data and potential disruptions in energy infrastructure.

WTI Crude (USOIL) Holds Key Technical Levels

West Texas Intermediate (WTI) crude is holding steady near $67.52, down 0.03%, as traders assess the interplay between supply concerns and macroeconomic factors. The pivot point at $67.01 serves as a crucial level remaining above it supports a bullish outlook, with resistance levels at $68.39 and $69.26. A break below $67.01 could open the door for further downside toward $66.13 and $65.27.

Brent Crude (UKOIL) Tests Critical Support Zone

Brent crude is trading at $70.83, down 0.04%, hovering just above its key pivot point of $70.25. Holding this level keeps the bullish bias intact, with resistance seen at $72.03. A breakout above $71.66 could push prices toward $73.38, signaling a shift in momentum. However, failure to hold $70.25 could accelerate losses toward $68.80 and $67.61.

Market Outlook: Balancing Supply, Demand, and Macro Risks

As oil markets navigate a complex landscape of tightening inventories, OPEC+ production uncertainty, and economic risks, traders remain on edge. The interplay between supply constraints and macroeconomic concerns will be crucial in shaping the next leg of price action. Keep a close watch on upcoming inventory data and geopolitical developments, as they will be key drivers of oil’s near-term trajectory.