Crude Oil Extends Losses Amid Global Growth Concerns

Fundamental Analysis

* Oil prices continued their decline for the second straight session as escalating U.S. tariff concerns on Canada, Mexico, and China raised fears of a global economic slowdown, potentially weakening energy demand. Meanwhile, OPEC+ signaled plans to increase oil production from April, though Russia’s Deputy PM Alexander Novak stated that the group could reverse this decision if market conditions warrant. With risk-off sentiment prevailing, investors are reducing exposure to high-risk assets, including crude oil.

Technical Analysis

*Technical Breakdown: Crude oil extended its downtrend after breaking below its previous support level. MACD signals strengthening bearish momentum, while RSI at 33 indicates further downside pressure as it remains below the midline.

* Resistance and Support: If crude oil stays below the $67.10 resistance level, it may continue sliding toward the next support at $63.65. However, failure to sustain the bearish momentum could trigger a technical rebound toward $67.10.

Understand how technical analysis can help you in this trading opportunity.

Potential Risks

Bargain buying may emerge if crude oil prices approach record lows, while potential OPEC+ intervention to curb production could provide support.

Know how to manage trading risks with risk management strategies.

Monitoring

Track updates on OPEC+ policy decisions, U.S. economic data, geopolitical tensions, and global energy demand forecasts for further directional cues, by following PU Prime’s market insights and daily financial news.

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Disclaimer

This content is for educational and informational purposes only and should not be considered investment advice, a personal recommendation, or an offer to buy or sell any financial instruments.

This material has been prepared without considering any individual investment objectives, financial situations. Any references to past performance of a financial instrument, index, or investment product are not indicative of future results.

PU Prime makes no representation as to the accuracy or completeness of this content and accepts no liability for any loss or damage arising from reliance on the information provided. Trading involves risk, and you should carefully consider your investment objectives and risk tolerance before making any trading decisions. Never invest more than you can afford to lose.