Trade Tensions & Inflation Impact on WTI Crude
Tariff Announcement: The US has imposed reciprocal tariffs on 22 nations, including major trade partners such as the EU, Japan, Canada, Mexico, and South Korea, after a failed trade agreement during the 90-day negotiation window.
EU Response: The EU is preparing retaliatory tariffs unless a deal is reached before the August 1 deadline, raising the risk of a trade war escalation.
Trump's Warning: The US President has threatened additional tariffs if retaliatory measures are enacted, compounding uncertainty in global trade flows.
Inflation Spike: US June CPI rose to 2.7% YoY, in line with expectations. The increase was driven by higher prices of imported goods, as tariffs begin affecting consumer costs.
Fed Policy Impact: Rising inflation weakens the case for a Fed rate cut in September, dampening liquidity expectations and investor risk sentiment.
Conclusion for WTI Crude Trading
The combination of rising inflation, tariff-driven cost pressures, and a potential stall in Fed easing is bearish for WTI crude in the near term.
Additionally, intensifying trade tensions threaten global demand outlooks, which may further weigh on oil prices.
Traders should expect near-term downside pressure on WTI crude unless there is a clear de-escalation in trade rhetoric or a surprise dovish pivot from the Fed.
Bias: Cautiously Bearish on WTI Crude near term.
Key Support and Resistance Levels
Resistance Level 1: 6830
Resistance Level 2: 6940
Resistance Level 3: 7045
Support Level 1: 6500
Support Level 2: 6435
Support Level 3: 6370
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Tariff Announcement: The US has imposed reciprocal tariffs on 22 nations, including major trade partners such as the EU, Japan, Canada, Mexico, and South Korea, after a failed trade agreement during the 90-day negotiation window.
EU Response: The EU is preparing retaliatory tariffs unless a deal is reached before the August 1 deadline, raising the risk of a trade war escalation.
Trump's Warning: The US President has threatened additional tariffs if retaliatory measures are enacted, compounding uncertainty in global trade flows.
Inflation Spike: US June CPI rose to 2.7% YoY, in line with expectations. The increase was driven by higher prices of imported goods, as tariffs begin affecting consumer costs.
Fed Policy Impact: Rising inflation weakens the case for a Fed rate cut in September, dampening liquidity expectations and investor risk sentiment.
Conclusion for WTI Crude Trading
The combination of rising inflation, tariff-driven cost pressures, and a potential stall in Fed easing is bearish for WTI crude in the near term.
Additionally, intensifying trade tensions threaten global demand outlooks, which may further weigh on oil prices.
Traders should expect near-term downside pressure on WTI crude unless there is a clear de-escalation in trade rhetoric or a surprise dovish pivot from the Fed.
Bias: Cautiously Bearish on WTI Crude near term.
Key Support and Resistance Levels
Resistance Level 1: 6830
Resistance Level 2: 6940
Resistance Level 3: 7045
Support Level 1: 6500
Support Level 2: 6435
Support Level 3: 6370
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.