WTI Crude Falls to $66.6 – Can Oil Prices Rebound This Week?
WTI crude oil drops to $66.6 amid weak Chinese data, shifting U.S. tariffs, and OPEC+ production plans. Will oil prices recover or continue to slide?
WTI crude oil futures dropped to $66.6 per barrel on Monday as concerns over China’s economic slowdown and U.S. trade policies weighed on demand.
China, the world’s largest oil importer, reported its first consumer price decline in 13 months, while producer prices continued to contract, reflecting persistent deflationary pressures.
Meanwhile, oil markets remain under pressure as President Trump’s evolving tariff policies create uncertainty over global economic growth and energy consumption.
While Trump temporarily eased tariffs on Mexico and Canada until April 2, Canada’s retaliatory measures remain intact, and China’s countermeasures are set to take effect today.
Key factors influencing crude oil markets:
China’s CPI fell for the first time in 13 months, signaling weak consumer demand.
Trump temporarily eased Mexico and Canada tariffs, but trade uncertainty lingers.
China’s countermeasures on U.S. imports take effect today, adding to demand concerns.
These developments highlight growing concerns about global oil demand, keeping WTI crude under pressure.
OPEC+ Output Decision and Russia Sanctions in Focus
Adding to the bearish sentiment, OPEC+ confirmed plans to increase oil production in April, despite market volatility. The group’s decision signals confidence in steady demand recovery, but some analysts warn that higher output could exacerbate oversupply concerns.
Meanwhile, geopolitical tensions remain a wildcard. President Trump recently stated that the U.S. could impose stricter sanctions on Russia if it does not agree to a ceasefire with Ukraine. This statement has introduced speculation about potential supply disruptions, which could provide temporary support to crude prices.
However, Russian Deputy Prime Minister Alexander Novak reassured markets, indicating that OPEC+ is open to reversing its production increase if the market weakens further.
Market-moving factors:
OPEC+ confirmed oil output hikes in April, adding to oversupply risks.
Trump threatens additional sanctions on Russia, creating potential supply concerns.
Russia’s Novak signals OPEC+ may reverse the decision if necessary.
While these factors provide some level of price stability, the broader trend remains uncertain as supply and demand imbalances persist.
WTI Crude Technical Analysis – Bearish Trend Persists
WTI crude remains under selling pressure, currently trading at $66.47, after failing to break above the $67.18 resistance. The 50-period EMA at $67.15 continues to cap price action, keeping the downtrend intact.
Immediate Resistance: $67.18 (Trendline & 50 EMA)
Next Resistance: $68.20
Next Resistance: $69.23
On the downside, if WTI remains below $67.18, further declines toward $65.76 are likely. A break below $65.76 could push prices down to $64.70 and $63.59, key support zones from previous market action.
Immediate Support: $65.76
Next Support: $64.70
Next Support: $63.59
With crude prices still in a well-defined descending channel, the bearish trend remains dominant. Traders should watch for a retest of $65.76, as a failure to hold this level could accelerate further losses. Only a breakout above $67.18 would indicate a potential reversal.
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