The worse than expected tariffs announcement on Wednesday triggered recessionary fears in the markets. Crude oil was one of the markets most affected by that news as OPEC+ continues to hike supply. So, we have both higher supply and lower demand expectations obviously leading to lower prices.
Moreover, OPEC+ yesterday surprised with a bigger boost to production than previously expected which exacerbated the selloff in crude oil. On the 1 hour chart below, we can see the catalysts that led to the selloff.
Crude oil 1 hour
On the weekly chart below, we can see that the price is approaching the key support zone around the 62-64 price region. That’s where we can expect the buyers to step in to position for a rally back into the 75 level (although the fundamentals remain strongly bearish for now). The sellers, on the other hand, will look for a break lower to increase the bearish bets into the 50 handle next.
Crude oil weekly
