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Crude oil pulled back from its new local high – Trump tariff news, inventories to influence price next.
Crude oil futures lost 0.39% on Tuesday, but remained above the key $70 level that was breached during Monday's 3.1% rally. Today, oil is trading 0.3% lower as markets anxiously await President Trump's tariff announcement scheduled for 4:00 p.m.
The market faces several events that will likely dictate short-term price action:
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Oil inventories release today at 10:30 a.m. - expected to show a decline of 0.4 million barrels, though API data released yesterday showed a surprise build of 6 million barrels
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President Trump's tariff announcement expected today.
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OPEC+ meetings scheduled for tomorrow.
Conclusion
Crude oil is taking a breather after Monday's breakout above the key $70 level. While remaining above this level is technically bullish, today's tariff announcement and tomorrow's OPEC+ meeting will likely determine the next significant price move.
For now, my short-term outlook is neutral.
I think that no positions are justified from the risk/reward point of view.
Here’s the breakdown:
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Crude oil has broken above the key $70 resistance level on Monday, confirming uptrend in the short term.
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Investors are awaiting Trump's tariff announcement today and OPEC meetings tomorrow; tariff threats create potential supply concerns.
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In my opinion, the short-term outlook is neutral.
Related: Crude Oil Faces Uncertainty at $70