WTI Crude Oil Climbs to $76.80 as Traders Weigh Trump’s Tariff Plans

WTI crude oil prices edged higher to $76.80 per barrel as traders analyzed the latest policy announcements from U.S. President Donald Trump.

The administration’s plan to impose 25% tariffs on Mexican and Canadian imports from February 1 has tempered expectations for a delayed rollout. However, Trump’s decision to postpone the announcement of specific levies on China, the world’s largest oil importer, has left markets uncertain about potential demand disruptions.

In addition to trade policies, investors are closely monitoring geopolitical developments. Monday’s 1% decline in crude prices followed Trump’s declaration of a national emergency aimed at boosting U.S. oil and gas production. Meanwhile, a ceasefire between Israel and Hamas has temporarily alleviated geopolitical risks, helping stabilize market sentiment.

Key Market Drivers:

  • Tariff Policies: 25% import duties on Mexico and Canada, with China’s fate uncertain.

  • Geopolitical Factors: Ceasefire in the Middle East easing supply concerns.

  • Domestic Production: Trump’s national emergency declaration aimed at boosting output.

Technical Analysis: Key Resistance and Support Levels

WTI crude oil is trading at $76.64, down 0.05%, struggling to reclaim the 50-day EMA at $76.85, which serves as immediate resistance. If prices break above this level, further resistance lies at $77.14, followed by key levels at $79.12 and $80.58, which could slow upward momentum.

WTI Crude Oil Price Chart - Source: Tradingview

On the downside, crude faces immediate support at $75.61, with stronger levels at $74.29 and $72.85, which could act as safety nets in case of a bearish breakout. The recent breakdown below the rising trendline suggests a weakening bullish trend, with short-term indicators hinting at potential consolidation.

Technical Levels Summary:

  • Resistance Levels: $76.85, $77.14, $79.12.

  • Support Levels: $75.61, $74.29, $72.85.

  • 50-day EMA: $76.85, acting as a critical pivot.

Market Outlook and Conclusion

WTI crude oil’s price trajectory hinges on whether it can hold above the $76.85 mark. A sustained move above this level could indicate renewed bullish momentum, potentially driving prices towards the $79.12 resistance zone. Conversely, failure to reclaim the 50-day EMA could reinforce selling pressure, leading to deeper corrections toward lower support levels.

With geopolitical uncertainties and tariff decisions looming, crude oil markets are expected to remain volatile. Traders should closely watch U.S. policy announcements and demand-side developments from key importers like China.

Key Takeaways:

  • WTI crude must break above $76.85 to regain bullish momentum.

  • Immediate support at $75.61, with lower targets at $74.29.

  • Market sentiment hinges on U.S. tariff policies and global demand trends.

This comprehensive analysis offers valuable insights for market participants navigating ongoing volatility in the crude oil sector.

 

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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