Conversely, failure to hold above $69.89 may drag prices down toward $66.60 and potentially deeper support levels at $65.38, $64.60 (50-day MA), and $64.06 (200-day MA).
At 10:06 GMT, Light Crude Oil futures are trading $69.42, down $0.58 or -0.83%.
Trump’s Tariff Pressure and Russia Sanctions Raise Oil Market Uncertainty
Oil prices are under pressure as traders evaluate the potential supply consequences from former President Donald Trump’s call for immediate tariffs on Russia and its trading partners. Trump pledged to enact 100% secondary tariffs unless progress is made in Ukraine negotiations within 10–12 days, an acceleration from a previously stated 50-day deadline. The U.S. has also warned China—Russia’s top crude buyer—of possible punitive trade measures.
Analysts remain hesitant to fully price in the threat given Trump’s historical inconsistency on trade policy. Still, the risk of reduced Russian oil exports looms if the rhetoric materializes into action. Adding to supply-side concerns, the U.S. Treasury slapped fresh sanctions on over 115 Iran-linked entities, underscoring the administration’s tightening pressure on key producers.
Crude Inventory Builds While Gasoline Draw Indicates Resilient Demand
U.S. crude stocks unexpectedly rose by 7.7 million barrels last week to 426.7 million barrels, sharply contrasting with analyst expectations for a 1.3 million barrel draw. The surprise build stemmed from a drop in exports. However, gasoline inventories fell by 2.7 million barrels, far outpacing estimates, suggesting continued strength in domestic driving demand.
According to Fujitomi Securities, the data presented a mixed picture—supportive for refined products but bearish for crude. Traders viewed the net result as broadly neutral for oil markets.
