WTI crude oil (CL) may recover as trade tensions between the US and China ease. The Trump administration is considering cutting tariffs from 145% to 50% and 65%. This potential rollback could stimulate global trade and lift oil demand.
At the same time, OPEC’s latest compensation plan supports oil prices. Eight member countries, including Iraq and Russia, will implement a combined production cut of 4.57 million barrels daily through mid-2026. Moreover, additional compensatory cuts of 378,000 barrels per day will help offset prior overproduction in May, preventing any significant supply surge.
The short-term outlook remains constructive despite today’s 2.5% dip in crude oil. However, the medium-term trend is neutral and requires a break above $72 to trigger a meaningful rally. Markets welcomed signs of a softer US stance. If tariff relief materializes and OPEC’s cuts are implemented as planned, oil prices could rebound steadily in the coming weeks.
WTI Oil Daily Chart – Pivotal Zone
The daily chart for WTI crude oil shows a rebound from the oversold region, reaching the key long-term pivot zone between $66 and $67. The price may consolidate within this area before a directional move. The trend remains bearish, and this rebound reacts to oversold conditions. If the price fails to break above $65-$67, another decline in WTI crude oil may follow.
