Oil News: Crude Oil Futures Sink on Profit-Taking After Trump Eases Iran Tensions

Trump’s Iran Pivot Triggers Sharp Selloff in Crude

WTI crude oil futures are sharply lower on Thursday as speculators booked profits and shorts rebuilt their positions after President Trump eased concerns over military action against Iran. Trump said the killings of demonstrators in Iran were stopping, tempering concerns over a potential supply disruption.

Both Brent and WTI crude soared on Wednesday before giving back nearly 50% of the current rally after Trump’s statement drove down the odds of a potential U.S. attack on Iran. Although Trump’s remarks fueled today’s break, the magnitude of the selling primarily reflects concerns over a supply glut.

At 12:37 GMT, March WTI Crude Oil futures are trading $59.08, down $2.80 or -4.52%.

Inventory Builds and Venezuela’s Return Deepen Oversupply Fears

Additional pressure on the market is coming from yesterday’s Energy Information Administration (EIA) inventories report, which showed another rise in crude and gasoline stocks. Keeping with the oversupply theme, three sources told Reuters that Venezuela has begun reversing oil production cuts made under a U.S. embargo as crude exports are also resuming.

OPEC Bucks Bearish Consensus with Bullish Demand Outlook

In demand news, OPEC predicts oil demand will continue growing in 2027 at roughly the same rate as 2026 and expects supply and demand to be roughly balanced next year. This is a more optimistic view than other major forecasters (like the EIA and IEA), who are predicting an oil surplus.

Record Chinese Imports Keep Floor Under Crude Prices

In other news, China reported that its crude oil imports rose 17% from a year earlier in December, while total imports in 2025 rose 4.4%, government data showed. The report also revealed that daily crude import volume hit all-time highs in December and for all of 2025. This is probably the main reason the market hasn’t penetrated $50.00 support despite the growing global supply.

Key Moving Averages Signal Shift in Momentum

Technically, the main trend is up, but momentum shifted to the downside when March WTI crude oil crossed to the weak side of the 200-day moving average at $60.56 and the retracement zone at $59.80 to $60.96, turning them into resistance again.

Given the $54.84 to $62.20 and the $55.65 to $62.20 ranges, the current break appears to be on a path into their respective 50% retracement levels at $58.52 and $58.93, followed by the 50-day moving average at $58.28. A break to the bear side of the 50-day MA will have erased the entire rally from last Friday to Wednesday.

Technical Bounce Possible as Iran Risk Premium Lingers

Looking ahead, despite Trump’s comments, the Iran situation hasn’t been taken off the table. The area remains a hotbed and there is still the possibility of a supply disruption. This means we could see new buying emerge on a test of the value area at $58.93 to $58.29. So be prepared for a technical bounce later today.

The market could also become rangebound between the 50-day and 200-day moving averages.

More Information in our Economic Calendar.