Crude oil prices drop: Can prices hold above $70 amid Trump's pro-drilling agenda?
Oil prices are under pressure, slipping below key levels as bearish sentiment dominates amid President Trump's aggressive pro-drilling policies. Brent crude fell to $79.49 per barrel, while WTI dropped to $76.68, sparking concerns about the market’s ability to sustain prices above $70.
President Trump’s moves to expand U.S. drilling, including lifting restrictions on Arctic and coastal areas, have stoked fears of oversupply. However, U.S. oil drilling remains subdued, with rig counts near post-pandemic lows as producers prioritize shareholder returns over production growth. Low real oil prices and rising costs further dampen the incentive to ramp up output, even as demand uncertainties loom.
Global crude oil dynamics and structural challenges
The market faces additional pressure from OPEC+ supply discipline and sanctions on Russian oil, which have displaced barrels but failed to significantly tighten supply. Meanwhile, U.S. shale fields, particularly in the Permian Basin, are showing signs of maturity, limiting long-term production growth. Efficiency gains have supported output, but geological constraints and capital discipline among producers pose headwinds.
Crude oil price forecast
With oil hovering precariously above $70, market watchers question whether prices can hold. While geopolitical disruptions and seasonal demand offer some support, the combination of Trump’s pro-drilling policies, restrained U.S. output growth, and global market fragility raises doubts about sustained price strength. Resistance levels are seen near $72 and $74, while support may emerge at $69 and $68.
Read the full article here: https://www.finextra.com/blogposting/27685/bearish-winds-for-oil-can-prices-hold-above-70-amid-trumps-pro-drilling-agenda
Disclaimer:
The information contained within this blog article is for educational purposes only and is not intended as financial or investment advice.
This information is considered accurate and correct at the date of publication. No representation or warranty is given as to the accuracy or completeness of this information.
The performance figures quoted refer to the past, and past performance is not a guarantee of future performance or a reliable guide to future performance. Changes in circumstances after the time of publication may impact the accuracy of the information.
Trading is risky. We recommend you do your own research before making any trading decisions.