Crude Turning Higher
As traders continue to digest the fallout from news that the US Court of International Trade has ruled Trump’s tariffs illegal, crude prices are pushing higher on Thursday. The prospect of a reversal of Trump’s trade tariffs is a major driver for risk markets, with crude standing to benefit materially if the ICT ruling is upheld. Trump is now appealing the decision within the 10-day timeframe set out by the Federal court. If it looks as though the ruling will be upheld, crude prices could move sharply higher near-term.
OPEC+ On Watch
Crude prices are also in focus over the back end of the week by fresh supply concerns as traders brace for the latest OPEC+ meeting this week, set to decide output levels for July. The group is widely expected to hike output again which should put fresh pressure on crude prices. This dynamic could be amplified if Trump is successful in appealing the ICT. On the other hand, if Trump fails to overturn the ruling, crude prices are likely to move higher near-term regardless of a fresh OPEC+ supply increase.
Technical Views
Crude
Crude prices remain capped below the 63.83 level for now though momentum studies are turning more bullish and price looks poised for a fresh break higher. If we do breach that level, 67.45 will be the next objective for bulls, with a test of the bear trend line coming in ahead of the level.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.