Crude oil settles down $0.31 at $68.62

The price of crude oil is settling down $0.31 at $68.62. The low price today reached $68.36 while the high price was at $69.28.

Technically, the low price today tested a low price going back to December 20 at $68.37. The price is bouncing modestly off of that level. A move below would open the door for further selling with a swing area between $66.40 and $66.91 the next key target area.

Fundamentally, former President Biden had eased sanctions on Venezuela’s oil, gas, and gold sectors in an effort to encourage free elections, but the plan has not unfolded as intended. A portion of those sanctions had already been reinstated in April 2024 after opposition candidate María Corina Machado was barred from running in the presidential elections.

Now, former President Donald Trump has announced he would end the agreement entirely, citing Venezuela’s failure to meet electoral conditions and its lack of cooperation in repatriating illegal immigrants, including violent criminals. In his statement, Trump declared that Biden’s concessions to Nicolás Maduro’s regime would be revoked as of the March 1 renewal deadline. Oil prices initially rose on the announcement but quickly gave back those gains. Also announced that the tears would go ahead as planned in April

Trump also announced that tariffs would go ahead as planned which could lead to lower demand.

This article was written by Greg Michalowski at www.forexlive.com.