USOIL – Daily Chart
The price of USOIL has reversed a potential move back above the $70 level and is pointing back toward the support at $68. Oil has already been on a rollercoaster in 2025 with a sharp rally in January that faded. That has led to repeated attempts from bulls to regain the bullish tone but it has still not had a lasting effect.
Crude oil prices had started the week on a positive note after the latest economic update from China, which showed manufacturing activity growing at the fastest pace in three months in February. Investors have been waiting for signs that oil demand can recover in China.
However, there was a reverse in price as traders reacted to tariff threats and news from OPEC+ that they will cut production. The Organization of the Petroleum Exporting Countries (OPEC) announced an initial agreement to begin increasing crude production globally. OPEC has had trouble convincing its own members to adhere to previous agreements.
According to OPEC’s announcement, the oil group is due to begin a “gradual and flexible” increase of voluntary production caps in April, but added that it is entirely dependent on a positive global growth outlook and “healthy market fundamentals”.
The increase in oil output comes after Trump called on OPEC countries to “cut the price of oil”. His administration has been engaged with Saudi Arabia and the president’s first call after his inauguration was said to be with Saudi Crown Prince Mohammed bin Salman.
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