It’s hard to find reasons to be optimistic about the oil market at the moment. The macro backdrop is such a tough one to go up against with OPEC+ increasing production in a time when Trump wants lower oil prices and heightened risks of a global economic slowdown. Tariff fears and a risk off mood in broader markets are the ones driving the latter this week.

And all of this combined is putting oil prices on the brink of a stronger collapse from a technical standpoint.

The latest drop in WTI crude now sees price fall to test support from the 2023 lows. A break below that and we’re going to be talking about a return to $60 again next.

I guess this is one part that will help central banks and the disinflation rhetoric.

The move by OPEC+ yesterday here was a bit surprising but if anything, it speaks to their greed and delusion that the oil market is still holding up well in light of recent economic developments.

But it seems like one way or another, Trump is getting his wish on this front at least.

This article was written by Justin Low at www.forexlive.com.