Oil continues to push higher as oversupply and tariff threats come under control
- Crude prices are rebounding after falling on President Trump's hefty tariff threats.
- Oversupply is still present but falling as demand rises.
Crude remains elevated on renewed confidence but is hesitating near recent highs, with WTI at 62.70 and Brent is trading near 65.70.
WTI and Brent crude oil continue to push higher amid renewed confidence that the OPEC consortium is beginning to bring out-of-control oil supplies back under control, despite oversupply from American oil production swamping global markets and President Trump's enflaming tariff threats last week unnerving commodity markets.
The glut of American oil supply is dwindling in the face of rising demand for crude oil coupled with hefty production cuts from the OPEC/Non-OPEC alliance that is working to restrain global crude supply; and despite shocks to commodity markets on President Trump voicing a willingness to engage in open-faced trade-wars, markets are reacting positively to news that Republican lawmakers, businesses, and foreign leaders are working hard to get the US President back on a leash, though markets are betting on hope as Donald Trump appears to be unmoved by attempts to reign in his threats. Crude bulls are moving back into the picture on the expectation that Trump's latest round of market-moving lash-outs will be resolved without incident.
The Energy Information Administration (EIA) will be dropping their EIA Crude Oil Stocks Change will be posting later Wednesday at 15:30 GMT, and the forecast 1.38M barrels will represent a further drawdown on oil supplies, and traders will be looking for a number at or below expectation.
Crude Technicals
Crude oil has priced in a rise from a higher low at 60.17 for WTI and 63.21 for Brent, while the current challenge for oil bulls will be to make and break the last swing high at 64.21 for WTI and 67.87 for Brent. WTI Intraday support levels are priced in at 62.30 and 61.95 with resistance at the 63.00 handle and 63.40, while Brent sees support from the 65.00 and 64.00 levels with resistance sitting at 66.10 and 66.75.