Oil Prices Rise 0.6% as Demand Surges and Tariff Concerns Ease

Brent crude climbed 0.6% this week, while West Texas Intermediate (WTI) gained 0.5%. The delay in reciprocal tariffs until April has eased concerns of an imminent trade war, giving markets more time to digest potential policy impacts.

“Positive developments on the trade front have warmed risk sentiment,” said Yeap Jun Rong, market strategist at IG. “However, gains may remain limited as traders weigh potential Russian supply increases amid peace talks.”

U.S. President Donald Trump recently directed officials to prepare tariff recommendations by April 1, extending the timeline for potential trade measures. Meanwhile, talks between Russia and Ukraine have raised the prospect of sanctions easing, potentially boosting global energy supply.

Global Oil Demand Hits 103.4 Million Bpd

Analysts at JPMorgan reported global oil demand surged to 103.4 million barrels per day in February, a 1.4 million bpd year-over-year increase. “Demand for mobility and heating fuels picked up in mid-February,” JPMorgan noted, suggesting the gap between actual and projected demand may soon narrow.

European Gas Prices Drive Fuel Substitution

Soaring natural gas prices in Europe have prompted a shift to oil as an alternative energy source, adding upward pressure on prices. If European gas prices remain elevated, oil consumption could continue to rise.

Daily Technical Outlook: WTI Crude Oil – February 14, 2025

WTI Crude Oil (WTICO/USD) is currently trading at $71.43, posting a modest gain of 0.07% during the latest session. The commodity remains within a descending channel, reflecting persistent bearish sentiment amid ongoing demand concerns. The recent recovery from $70.32 indicates short-term buying interest, though the broader trend remains downward.

The pivot point for the day is positioned at $71.24. Immediate resistance is seen at $72.60, with subsequent barriers at $73.63 and $74.57. On the downside, immediate support is noted at $70.32, followed by $69.43 and $68.49.

Technical indicators provide a cautious outlook. The 50-hour EMA, currently at $71.97, acts as dynamic resistance, capping upside moves. Price action below this EMA confirms the continuation of the bearish trend. The Relative Strength Index (RSI) remains near neutral, suggesting indecision among market participants.

Fundamental factors, such as declining U.S. stockpile data and broader economic uncertainties, continue to weigh on oil prices. A break above $72.60 could signal a potential trend reversal, while failure to hold $70.32 may accelerate losses.

Key Insights:

• Immediate Resistance: $72.60; Immediate Support: $70.32

• 50 EMA: $71.97 – Acts as dynamic resistance

• Descending channel indicates continued bearish momentum

Conclusion: WTI Crude Oil remains under pressure below $72.60. Traders should monitor the $70.32 support level for potential downside acceleration.