WTI crude oil is under pressure at about $69.90 a barrel as concerns over world economic growth and demand for fuel dwarf supply threats. The market grapples with several headwinds, ranging from the United States imposing a 10% tariff on March 4 for Canadian energy imports, a recession in the United States with Q4 GDP declining to 2.3%, and increasing jobless claims. At the same time, oil prices experienced a short-term boost as President Trump canceled Chevron’s right to do business in Venezuela, potentially upsetting a large section of the country’s oil exports. Furthermore, OPEC+ is considering its production strategy with heightened geopolitical uncertainty, putting the market on its toes as investors wait for crucial economic indicators and policy announcements.

KEY LOOKOUTS

• WTI lags at $69.90 amid economic slowdown concerns and U.S. tariff threats on market sentiment, despite fleeting price spikes.

• A 10% tariff on Canadian energy imports from March 4 poses supply disruption risks and the risk of Canadian retaliatory actions.

• Trump’s cancellation of Chevron’s Venezuela license puts oil exports at risk, which could influence global supply trends and trigger new talks with PDVSA.

• OPEC+ considers its April production plan in the face of new U.S. sanctions on Venezuela, Iran, and Russia, creating additional market uncertainty.

WTI crude oil continues to struggle, trading at about $69.90 per barrel, as global economic worries and U.S. tariff threats dampen market sentiment. The Biden administration’s move to apply a 10% tariff on Canadian energy imports from March 4 creates supply chain disruption concerns and possible retaliatory measures. In the meantime, oil prices briefly surged after President Trump cancelled Chevron’s license to do business in Venezuela, an action that would dislocate more than 25% of Venezuela’s oil exports. Contributing to volatility in the markets, OPEC+ still hasn’t decided on its April production plan amidst new U.S. sanctions against Venezuela, Iran, and Russia, leaving market players uncertain about forthcoming supply levels. As the U.S. economy is already reflecting slowdown growth and growing jobless claims, investors are now looking forward to the coming PCE price index report, a leading indicator of inflation and upcoming Federal Reserve policy action.

WTI crude oil trades at $69.90 as economic slowdown concerns, US tariff risks, and supply disruptions hold prices in check. Market volatility is supported by the Chevron-Venezuela license cancellation and OPEC+ policy uncertainty, keeping investors nervous.

• WTI remains low around $69.90 per barrel as economic slowdown risks and supply-demand weak fuel burden the market.

• The U.S. will slap a 10% tariff on Canadian energy imports from March 4, causing concern over supply disruptions and trade tensions.

• Trump withdrew Chevron’s license to do business in Venezuela, putting more than 25% of the nation’s oil exports at risk and affecting global supply.

• Q4 GDP growth fell to 2.3%, from 3.1% in Q3, with increasing jobless claims signaling possible weakness in the labor market.

• In spite of bearishness, oil prices jumped more than 2% on supply fears after the Chevron-Venezuela news.

• OPEC+ remains undecided on its April production plan with new U.S. sanctions on Venezuela, Iran, and Russia adding to market uncertainty.

• Traders are waiting for the PCE price index report, the Federal Reserve’s most important inflation indicator, for clues on possible policy changes.

WTI crude oil is increasingly uncertain with geopolitical tensions and policy changes dictating the energy market. The U.S. government’s imposition of a 10% tariff on Canadian energy imports from March 4 has created uncertainty around supply chain stability and possible trade wars. At the same time, President Trump’s action to rescind Chevron’s operating license in Venezuela brings even more complexity since it has the potential to blow up a sizable portion of Venezuela’s oil exports. These incidents have put energy traders and market participants waiting closely for further policy announcements and possible long-term effect on world oil dynamics.

WTI Daily Price Chart

Chart Source: TradingView

At the same time, OPEC+ is considering its April production plan against the backdrop of continued geopolitical changes and new U.S. sanctions on Venezuela, Iran, and Russia. The organization has a tricky balancing act to perform between keeping production steady and reacting to possible supply disruptions. Concerns about economic growth, inflationary pressures, and labor market developments also continue to shape investor attitudes. While policymakers and businesspeople confront these difficulties, the issue is how the world’s energy policies will change to accommodate new economic and political realities.

TECHNICAL ANALYSIS

WTI crude oil is at present trading just below the $70.00 psychological level, with resistance near $71.50 and support near $68.50. The price continues to trade below major moving averages, which reflects bearish short-term momentum. The Relative Strength Index (RSI) stands just above the neutral zone, indicating indecisiveness from traders. A breakout above $71.50 might indicate further upside potential, and a fall below $68.50 can result in sustained losses. Volume analysis indicates diminishing buying interest, supporting the bearish mood in the market. Traders are observing closely for confirmation of a breakout or consolidation.

FORECAST

WTI crude oil is able to remain above the $70.00 level and breaches the crucial resistance at $71.50, it may initiate a bullish trend. A consistent rally above this level might force prices towards the next resistance at $73.00, where the buying interest may take even more control. Furthermore, if OPEC+ chooses to cut or keep output steady, supply worries might intensify and push prices upward. Upbeat economic news, softening inflation, or a recovery in worldwide fuel demand could also underpin a near-term crude oil price uptrend.

 WTI cannot hold the $70.00 mark and goes below $68.50, selling pressure can increase, and prices can move towards the next support level at $66.00. Increasing worries about world economic growth, soft demand signals, and the effect of U.S. tariffs on oil imports may also pressure oil prices further. Further, any surprising rise in crude oil stocks or a firm U.S. currency could contribute to bearishness, raising the probability of a more acute fall in WTI prices.