Oil News: Crude Oil Futures Stall Below $67.44 Pivot as Oil Demand Outlook Weakens

Crude Oil Holds Ground as Trump’s Deadline Tempers Russia Sanctions Risk

Light crude futures traded flat on Tuesday, consolidating after Monday’s retreat from a three-week high of $69.65. Prices are now holding below a long-term pivot at $67.44, reestablishing it as resistance.

With downside momentum building, technical traders are eyeing support at the 200-day moving average near $65.31, and deeper support at the 50-day moving average at $63.70.

Trump’s Russia Sanction Delay Cools Immediate Supply Concerns

Traders had been bracing for potential supply disruptions as former U.S. President Donald Trump signaled sanctions against Russia. However, his 50-day deadline to end the Ukraine war has eased fears of near-term action.

UBS analyst Giovanni Staunovo noted that the delay reduced expectations of any immediate market tightening, leading to a retreat in crude prices.

ING analysts cautioned that if sanctions are eventually imposed, they could significantly alter global crude flows.

Russia’s top buyers—China, India, and Turkey—would be forced to reconsider purchases under threat of secondary U.S. sanctions, creating a real risk of supply reallocation or trade disruptions.

Tariffs and Slowing Chinese Economy Add Pressure to Demand Outlook

On the demand side, Trump’s announcement of 30% tariffs on EU and Mexican imports starting August 1 has renewed concerns about weaker trade and slowing growth. These protectionist measures increase the likelihood of reduced fuel consumption, weighing on oil prices.

China’s second-quarter GDP data came in stronger than expected, but analysts attributed the result to short-term government support and a rush to export before tariffs take effect.

Consumer sentiment remains low, prices continue to decline, and export demand is weakening—all pointing to potential softness in crude consumption from one of the world’s largest importers.

OPEC Expects Strong Q3 Demand But Traders Remain Defensive

OPEC maintains a supportive stance, with its secretary general telling Russian media that oil demand will remain “very strong” through the third quarter. This may keep the market balanced in the near term, even as global economic signals point to reduced consumption risks.

Oil Prices Forecast: Bearish Near-Term Bias Below Key Pivot

Crude prices remain under pressure below the $67.44 resistance, with both technicals and global economic signals weighing on sentiment. Unless prices recover and hold above that pivot, the near-term outlook leans bearish, especially with demand risks tied to tariffs and China’s slowdown.

More Information in our Economic Calendar.