WTI Oil Prices Drop as Geopolitical Tensions and Tariffs Weigh on Market Sentiment
West Texas Intermediate (WTI) oil prices continued to decline on Tuesday following a series of geopolitical and economic developments.
President Donald Trump confirmed the suspension of military aid to Ukraine after a tense meeting with Ukrainian President Volodymyr Zelenskiy.
At the same time, markets braced for the implementation of US tariffs on imports from Canada, Mexico, and China.
Trump confirmed that 25% tariffs on imports from Canada and Mexico would take effect on March 4 and also signed an order to increase tariffs on Chinese goods from 10% to 20%.
Reciprocal tariffs are expected to kick in on April 2.
Additionally, OPEC+ decided to move forward with a planned increase in oil production by 138,000 barrels per day, the first rise in output since 2022.
This decision, combined with concerns about the potential economic impact of the tariffs, led to a 2% drop in oil prices on Monday, bringing them to their lowest level in 12 weeks.
Despite a somewhat bearish technical picture, the short-term outlook remains neutral.
However, bulls are likely to stand guard from $66.50-70.
Technically, the 3-day RSI remains negative, the MACD shows uncertainty, and the ADX indicates a range-bound market.
Daily Chart West Texas Intermediate (WTI)
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