Oil Prices Rebound Ahead of OPEC+ Talks and US Trade Deals
Oil prices rebound from recent lows as markets turn attention to the OPEC+ production increase and upcoming U.S. trade agreements
FUNDAMENTAL OVERVIEW:
Oil prices inched higher on Tuesday, rebounding from three-week lows as traders looked ahead to updates on trade negotiations and the upcoming OPEC+ output meeting.
Market sentiment is cautiously improving on hopes that the Trump administration will finalize trade agreements ahead of the July 9 deadline set by President Donald Trump.
However, tensions resurfaced after President Trump criticized Japan on Monday and suggested the U.S. might walk away from trade talks with Tokyo. Meanwhile, Treasury Secretary Scott Bessent warned that countries could still face steep tariffs, even amid ongoing negotiations.
These developments have sparked concerns that escalating trade tensions could hamper global economic growth, potentially curbing oil demand.
On a more positive note, the U.S. and China have already reached a deal, and Canada recently scrapped a tax targeting major U.S. tech companies, just before it was set to take effect, paving the way for renewed talks.
In addition, the European Commission is advancing three core proposals in Washington this week, as both sides aim to reach a preliminary agreement, with finer details to be finalized later.
Beyond trade developments, attention now shifts to the OPEC+ meeting later this week, where the group is expected to continue unwinding two years of output cuts.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within an up channel.
Crude Oil is moving below 10 & 100 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 68.00
Immediate support level: 63.50
HOW TO TRADE CRUDE OIL
Crude oil experienced a sharp upward surge but quickly encountered significant resistance on the higher timeframes, resulting in a swift and aggressive pullback that erased its earlier gains. The price is now hovering near a crucial support area, which coincides with a key ascending trendline. If this demand zone holds firm, it could trigger a fresh wave of buying, potentially leading to another upward move in crude oil prices.