Crude oil prices fell by 2.88% today, settling at $66.31, a decrease of $1.95. This drop marks the largest since November 25, driven by concerns over a tariff-related economic slowdown.
OPEC+ plans to resume halted production in April, adding 138,000 barrels per day to global supply, which adds additional pressure on prices. The decline briefly tested the September 2024 low of $65.27 before recovering slightly at settlement.
Key Support Levels
Key support levels are at $65.27, $64.36, and $63.64. If prices can break above the November low of $66.53, it may encourage buyers and lead to further upward movement.
The decline in crude oil prices reflects deeper concerns about future demand, especially as the possibility of slower economic growth influences market sentiment. A 2.88% drop is no small movement, particularly given that it represents the steepest single-day fall in over three months. The latest downward shift was fuelled by worries that tariffs may restrain economic activity, cutting into consumption forecasts. As a result, selling pressure accelerated, pushing the market dangerously close to breaking key technical levels.
Production decisions by OPEC+ remain a central factor in how supply expectations shape the pricing environment. With an additional 138,000 barrels per day set to enter global markets from April, more downward pressure could emerge, particularly if demand projections weaken further. The temporary dip to $65.27 earlier today—matching the low from September—demonstrates how traders reacted swiftly to shifting fundamentals, though a modest recovery by the close signals some hesitancy among sellers.
Market Sentiment And Future Outlook
For now, price levels at $65.27, $64.36, and $63.64 act as areas where buying interest may return if selling continues. A failure to hold above these figures could attract further momentum from bearish participants. However, should prices reclaim $66.53—the lowest point from November—sentiment may improve as buying strengthens. If that happens, it would likely reinforce a view that recent declines were excessive, setting up the potential for more gains.
The coming weeks demand greater attention to supply changes and tariff-related economic signals. Any new developments could provoke fresh volatility, testing the resolve of those positioning for either a rebound or further losses. With OPEC+ expected to reintroduce supply soon, positioning will need to account for both immediate technical considerations and shifting long-term expectations.
