04 Feb 2025

• WTI drifts lower for the second consecutive day and remains close to a one-month trough.
• Trump’s decision to delay tariffs eases worries about supply disruption and exerts pressure.
• The OPEC+ remains committed to gradually phase-out of production cuts, lending support.
• 1. West Texas Intermediate (WTI) US Crude Oil prices continue to decline following a retracement from a one-week high, attracting sellers for the second consecutive day on Tuesday. The commodity is currently trading around the $72.00 level, close to a one-month low reached last week and just above the support provided by the 100-day Simple Moving Average (SMA).
  
  US President Donald Trump has announced a one-month postponement of newly implemented tariffs on imports from Canada and Mexico. This development alleviates concerns regarding potential supply disruptions from two of the main oil suppliers to the US, thereby exerting downward pressure on Crude Oil prices. Additionally, the expectation of reduced fuel demand—stemming from the anticipated ripple effects of Trump's policies on global economic growth—serves as another factor contributing to the decline in oil prices.
• The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have declined requests from Trump to boost oil production in order to reduce prices, opting instead to adhere to their existing production strategies. This decision may provide support for crude oil prices and mitigate further declines. Therefore, it would be wise to await a consistent breach below the 100-day simple moving average, which is currently situated around the $71.00 level, prior to considering a position for an extension of the recent downturn from a multi-month peak.