Crude oil prices are feeling the pressure again as global economic concerns take centre stage. With tensions flaring between the US and China, traders are growing more cautious about future demand. The mood across energy markets has shifted, as signs of slowing growth and trade disruptions raise doubts about whether oil consumption can hold steady in the months ahead.
Crude oil prices continued to fall on Friday, closing out a second consecutive week of declines.
The renewed trade conflict between the US and China has sparked fresh concerns over a global economic slowdown, potentially leading to reduced demand for oil.
West Texas Intermediate (WTI) slipped by 0.6% to USD 59.71, while Brent crude dropped 0.5% to USD 63.02.
These losses followed a sharp downturn on Thursday, where both benchmarks shed more than USD 2 per barrel, deepening an overall 11% decline seen over the past two weeks.
Mounting worries about slowing global growth are fuelling fears of demand destruction. Daniel Hynes from ANZ highlighted that if global GDP growth dips below 3%, oil demand could contract by 1% — a scenario that now seems increasingly likely due to heightened tariff actions.
The US Energy Information Administration (EIA) has also downgraded its oil consumption forecasts for both domestic and global markets, citing worsening economic conditions.
Adding to the bearish sentiment, President Trump has imposed 145% tariffs on Chinese imports, while China has retaliated with an 84% levy on US goods.
These escalations between the world’s top two oil consumers are dampening trade volumes and destabilising supply chains, causing traders to price in a sustained drop in demand rather than immediate supply concerns.
On the technical front, WTI crude (CL-OIL-ECN) has reversed sharply after peaking at USD 63.32, with sustained downward momentum now taking hold.
The MACD (12,26,9) has turned negative, and prices are trading below key moving averages (5, 10, and 30-day), reinforcing the bearish structure.
The recent high of USD 63.32 now serves as firm resistance. Prices are currently hovering around USD 59.48, with potential for a further drop toward the USD 58.00–55.00 support zone.
The MACD histogram remains in negative territory, signalling continued weakness and a lack of reversal signals.
Looking ahead, markets will closely watch OPEC+ statements, Chinese industrial production figures, and refinery data from the US.
Unless macroeconomic conditions improve significantly, crude oil is likely to remain under pressure, with limited potential for a strong recovery in the near term.
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