Crude oil settles $1.95 lower at $66.31

Crude oil dropped 2.88% today, marking its largest decline since November 25, when prices fell 3.23%. The commodity settled at $66.31, down $1.95, as fears of a tariff-driven economic slowdown weighed on sentiment. Additionally, OPEC+ announced plans to restart some halted crude production in April, adding 138,000 barrels per day to global supply, further pressuring prices.

Technically, today’s decline saw crude test and briefly dip below the September 2024 low of $65.27, but momentum failed to hold, leading to a bounce into settlement.

Key downside levels remain at the 2024 low at $65.27 ann the 2023 lows of $64.36 and $63.64, which could act as the next support zones if selling pressure resumes.

Conversely, the bounce off the 2024 lows will have traders looking to the low from November at $66.53 as the next upside target that if broken, would give the dip buyers some confidence that the test of the 2024 low, could lead to a more significant bounce higher.

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