The US Energy Information Administration forecasted lower oil output in 2025. Declining prices have led American producers to scale back drilling. This reduction in future supply adds upward pressure on prices. Meanwhile, Trump’s announcement of a 50% tariff on copper could affect broader commodity sentiment, increasing uncertainty in energy markets.
On the other hand, OPEC+ plans to boost supply by 548,000 barrels per day in August. UAE officials emphasised that markets are absorbing extra barrels without building large inventories. This indicates that global demand may be stronger. If inventory levels remain low, oil prices could stay elevated despite increasing supply.
WTI Crude Oil (CL) Technical Analysis
WTI Oil Daily Chart – High Volatility
The daily chart for WTI crude oil (CL) shows that the price has rebounded from the 50-day SMA and reached the 200-day SMA. The rebound from the long-term support zone around $66 reflects strong volatility. However, the overall trend remains downward. This heightened volatility is driven by ongoing uncertainty stemming from the ongoing tensions between Iran and Israel. A break above $69 would signal further upside toward the $72.50 level. However, a break above $77 is necessary to establish sustained upward momentum.
