Oil Surges After Court Blocks Trump Tariffs as Markets Eye Weekend OPEC+ Decision

Oil prices jumped Thursday morning after a U.S. trade court ruled against President Trump’s sweeping tariff plan, lifting global risk sentiment as traders await a critical OPEC+ production meeting this weekend.

Brent crude futures climbed 81 cents to $65.71 per barrel, marking a 1.25% gain, while West Texas Intermediate rose 83 cents to $62.62 per barrel, up 1.34% as of early Asian trading.

The Court of International Trade determined Wednesday that Trump exceeded his constitutional authority by imposing broad tariffs on countries with trade surpluses against the United States.

The ruling provided immediate relief to markets that had grown increasingly anxious about economic repercussions from the administration’s trade policies. However, analysts expect the administration will appeal the decision, suggesting the relief may prove temporary.

Technical analysis of the daily charts reveals both crude benchmarks remain trapped within descending channel formations that have dominated trading since mid-January.

Brent currently trades near the upper boundary of its recent $62-66 range, with the 20-period moving average providing dynamic resistance around $64.80.

The Relative Strength Index shows neutral momentum at 45, suggesting neither overbought nor oversold conditions. WTI demonstrates similar technical characteristics, consolidating between $60-63 support and resistance levels.

The commodity touched $61.60 during overnight trading, testing the lower boundary of its recent range before recovering. Volume patterns indicate institutional accumulation near current levels, though breakthrough moves require sustained momentum above $63 for WTI and $66 for Brent.

Supply fundamentals added support to prices after the American Petroleum Institute reported crude inventories declined 4.24 million barrels for the week ending May 23.

Oil Market Outlook

Markets had expected a build rather than the significant drawdown, suggesting stronger domestic demand patterns. The weekend OPEC+ meeting looms as the next major catalyst, with eight member countries expected to approve a 411,000 barrel-per-day production increase starting in July.

Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman will likely accelerate their planned output restoration timeline, adding supply pressure despite current price strength.

Additional geopolitical risks remain elevated with potential new U.S. sanctions targeting Russian crude exports. The market continues balancing supply disruption concerns against the group’s planned production increases.

Moving averages on both charts show bearish crossovers, with the 100-period SMA falling below the 200-period SMA, indicating longer-term downward pressure despite Thursday’s gains. Bollinger Bands suggest reduced volatility, with prices trading near the middle band on both benchmarks.

The technical setup suggests oil remains vulnerable to renewed selling pressure above current resistance levels, particularly if OPEC+ proceeds with aggressive supply additions while global demand concerns persist.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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