At 10:32 GMT, Light Crude Oil futures are trading $66.20, down $0.32 or -0.48%.
The first resistance sits at the long-term pivot of $67.44, followed by Monday’s three-week high at $69.65, and a 50% retracement level at $71.20. Price action remains rangebound, as improved demand indicators out of China and upbeat OPEC projections clash with mounting concerns over inventory builds and deteriorating global trade relations.
OPEC and Chinese Refiners Support Demand Outlook
OPEC’s latest monthly report expressed cautious optimism, projecting stronger global oil demand in the second half of the year. The group highlighted economic resilience in Brazil, India, and China, with signs of stabilization in the U.S. and EU.
Adding to the demand case, Chinese state-owned refiners are ramping up throughput following recent maintenance shutdowns. Analysts say the push is aimed at meeting rising third-quarter fuel consumption and rebuilding gasoline and diesel stocks that have fallen to multi-year lows. These signals have helped limit selling pressure, at least temporarily.
U.S. Crude Inventory Builds and Tariff Threats Cloud Market Sentiment
Offsetting the demand optimism is a fresh build in U.S. crude and product inventories. According to API estimates, U.S. crude stocks rose by 839,000 barrels last week, while gasoline added 1.93 million barrels and distillates climbed 828,000 barrels. The stock build suggests domestic supply remains ample even as refiners ramp up summer output.
Traders are eyeing the official EIA report for confirmation of a 1.8 million barrel crude draw, which could help stabilize prices if confirmed.
