Crude oil futures struggle below the $70 level amid stock market sell-off, Trump tariffs.
Crude oil futures lost 0.80% on Friday, extending its fluctuations following recent advances. Today, oil continues to struggle just below the key resistance level of $70, as broader market uncertainty weighs on prices.
The market faces several events this week that could significantly impact oil prices:
- President Trump's tariff announcement expected on Wednesday (April 2).
- OPEC+ meetings scheduled for Thursday.
- Concerns about potential economic slowdown due to trade tensions; key monthly jobs data on Friday.
Conclusion
Crude oil remains near the important $70 level. While inventories showed a drawdown last week, ongoing stock market uncertainty fueled by tariff fears continues to influence oil prices negatively.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
I think that no positions are justified from the risk/reward point of view.
Here’s the breakdown:
- Crude oil continues to fluctuate below the key $70 resistance level.
- Investors are awaiting Trump's tariff announcement and OPEC meetings later this week.
- In my opinion, the short-term outlook is neutral.
The full version of today’s analysis - today’s Oil Trading Alert - is bigger than what you read above, and it includes the current Crude Oil futures contract position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Oil Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Stock Trading Alerts.
And if you’re not yet on our free mailing list, I strongly encourage you to join it - you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free oil newsletter today.
Thank you.
Paul Rejczak,
Stock Trading Strategist