Oil Prices Rise as Trade War Tensions Ease, Demand Outlook Up
Oil prices extend gains amid easing trade war tensions
FUNDAMENTAL OVERVIEW:
Oil prices inched higher on Tuesday, buoyed by optimism that tensions from the U.S. trade war with key partners were easing and as President Donald Trump increased pressure on Russia over its involvement in the Ukraine conflict.
Brent crude rose 22 cents (0.3%) to $70.26 per barrel by 1218 GMT, reaching its highest level since July 18, while U.S. West Texas Intermediate (WTI) crude climbed 27 cents (0.4%) to $66.98. Both benchmarks had surged more than 2% in the previous trading session.
A recent trade agreement between the U.S. and the European Union avoided a full-scale trade war, despite introducing a 15% tariff on most EU goods. Analysts viewed the pact as preventing disruptions to nearly a third of global trade and supporting a more stable fuel demand outlook.
The deal also outlines $750 billion in EU energy purchases from the U.S. over the next three years—an ambitious target that analysts believe is unlikely to be met. Additionally, European firms are expected to invest $600 billion in the U.S. during Trump’s second term.
Meanwhile, Trump has given Russia a new deadline of “10 or 12 days” to advance toward ending the war in Ukraine, threatening further sanctions on both Russia and its trade partners if progress stalls.
Traders are also closely monitoring the upcoming U.S. Federal Open Market Committee (FOMC) meeting scheduled for July 29–30.
CRUDE OIL TECHNICAL ANALYSIS CHART:
Technical Overview:
Crude Oil is trading within a down channel.
Crude Oil is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 69.70
Immediate support level: 66.30
HOW TO TRADE CRUDE OIL
Following a strong and extended rally, Crude Oil saw a sharp decline toward a key support zone, where it began consolidating within a range. Currently, the commodity is showing renewed strength, having broken above its immediate resistance level. If it sustains above this level, further upside toward the major resistance zone remains likely.