WTI crude oil is currently down 2.65% on the day as Trump’s pledge of boosting oil output and imposing 25% tariffs on Canada and Mexico is weighing on oil prices.
The bigger concern in the market might be a potential trade war. Trade wars aren’t good as they lead to an economic slowdown which depresses demand. The US Dollar strength and a potentially longer than expected pause from the Fed could also keep the downward pressure on the market.
Technically, the price failed to break above the key $80 handle recently and fell below the broken trendline which could end up being a fakeout. There’s no real support until the $72 price region.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
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