Oil News: WTI Straddles 200-Day MA as U.S.–China Tariff Truce Lifts Mood

WTI Inches Higher but Still Boxed In by Key Levels

Light crude oil futures are nudging higher this morning, but let’s be honest — we’re still in the same holding pattern we’ve been in for days. Prices are camped just above last week’s $62.77 low and that June 24 bottom at $62.69, while straddling the 200-day moving average at $64.08. That line has been calling the shots for the longer-term trend, and I think most traders are watching it closely.

At 10:48 GMT, Light Crude Oil futures are trading $64.01, up $0.05 or +0.08%.

On the topside, there’s a bit of a gauntlet to run — the long-term 50% retracement at $65.38 and the 50-day moving average at $65.60. And if we’re talking short-term charts, the $66.64 pivot from the $70.51–$62.77 range is the real swing point. Take that out with conviction, and it doesn’t take much imagination to see this market pop a couple of bucks in a hurry.

Tariff Truce Gives Oil a Breather

Part of the calm here comes from the U.S.–China tariff extension. President Trump’s decision to push the pause button until November 10 took some weight off the market’s shoulders. Triple-digit duties on Chinese goods would have been a body blow to global growth and, by extension, fuel demand. Now traders have a little breathing room — though whether this is a path to an actual agreement or just kicking the can down the road remains to be seen.

Rate Cut Bets Add Support

The other quiet boost comes from softer U.S. labor data, which has traders leaning harder toward a September Federal Reserve rate cut. That kind of move tends to pull the dollar lower, lift equities, and, more often than not, perk up oil demand. We’ve also got U.S. inflation data due later today — if it comes in cooler, the rate-cut crowd gets even louder. That being said, I don’t think crude is going to break out on this alone unless the chart levels start to give way.

Geopolitics Could Flip the Script Fast

Traders can’t ignore Friday’s planned Alaska sit-down between Trump and Putin. The Ukraine war headline risk is still huge — a peace push could ease sanctions pressure, while a breakdown might mean tougher penalties on Russian oil buyers like China and India. Commerzbank’s already warning that if Friday doesn’t bring progress, secondary sanctions could expand. That’s the sort of thing that can spike or sink prices overnight, no matter what the charts are saying.

Outlook: More Likely Than Not, We Stay Range-Bound — For Now

More likely than not, we keep grinding sideways between $62.70 and $66.60 until one of these geopolitical or economic triggers hits. Buyers seem comfortable defending dips toward $63, but the market hasn’t shown it’s got the strength to break $66.64 yet. I’d still look at pullbacks as potential buying opportunities — but we’ll see how that plays out if Friday’s meeting throws a curveball.

More Information in our Economic Calendar.