Oil News: WTI Futures Supported by 50- and 200-Day MAs as Traders Target $68.34

Crude Oil Prices Supported by Trade Relief and Rising Geopolitical Risks

Oil prices posted modest gains Tuesday as traders weighed trade war de-escalation efforts and renewed geopolitical pressure from the U.S. on Russia. While upside momentum stalled late in the session, price action remains technically constructive.

At 11:57 GMT, Light Crude Oil futures are trading $66.72, up $0.01 or +0.01%.

WTI futures are holding firmly above key levels. The market remains on the strong side of the long-term pivot at $65.38, with additional support from the 50-day moving average at $64.01 and the 200-day at $64.04. The immediate upside targets are marked at $68.34, followed by $69.89. Traders appear to be awaiting a stronger catalyst to test those resistance zones.

U.S.-EU Energy Pact Eases Demand Fears

A narrowly avoided trade war between the U.S. and the European Union helped support sentiment. The two sides agreed to a framework that imposes a 15% tariff on most EU goods but avoids broader escalation. Notably, the pact includes $750 billion in projected EU purchases of U.S. energy over three years—an ambitious figure analysts widely doubt the bloc can fulfill. Still, the deal reduces downside risk to global fuel demand and supports the outlook for U.S. energy exports.

The agreement also includes $600 billion in pledged investment from European companies into the U.S. economy during Trump’s second term, signaling cross-border capital flows that could help stabilize long-term demand profiles.

U.S.-China Talks Offer Demand Tailwind

Trade officials from the U.S. and China are in Stockholm for a second round of talks aimed at resolving long-standing disputes. A breakthrough between the world’s two largest economies would provide a direct boost to global trade flows and support oil demand across industrial and shipping sectors.

These negotiations are being watched closely by energy markets, especially with fuel demand forecasts already under strain from inflation and tighter monetary policy.

Trump Sets Russia Deadline, Raising Supply Concerns

On the geopolitical front, President Trump issued a fresh deadline of “10 or 12 days” for Russia to show progress on ending the war in Ukraine. He warned that without movement, the U.S. would impose additional sanctions on Russia and potentially on buyers of its oil exports.

This raised near-term concerns over supply disruptions from one of the world’s top crude exporters. ING analysts noted that oil prices rallied on Trump’s comments, reflecting the market’s sensitivity to tightening supply risks.

Market Forecast: Bullish Bias Holds, Pending Catalyst

Crude oil continues to trade above key technical markers, supported by easing trade tensions and emerging supply risks. While the rally paused on Tuesday, the setup favors further upside toward $68.34 and $69.89 if a new catalyst—such as dovish Fed guidance or geopolitical escalation—materializes. The short-term outlook remains bullish, backed by solid technical structure and improving external demand signals.

More Information in our Economic Calendar.