FX.co ★ Oil Rises on Technical Rebound

On Tuesday, West Texas Intermediate (WTI) crude oil futures experienced a rise, reaching approximately $61.50 per barrel. This uptick is attributed to a possible technical recovery following three successive sessions of decline. The recent downward trend was largely due to escalating concerns that a worsening trade war could trigger a global economic downturn, thereby diminishing energy demand. On Monday, market sentiment briefly recovered upon news that President Donald Trump might consider a 90-day postponement on new tariffs. However, this was quickly refuted by the White House. Subsequently, Trump threatened to increase tariffs on China by an additional 50% starting Wednesday, unless Beijing withdraws its retaliatory actions. Further contributing to the downward pressure were plans for a larger output increase by OPEC+ slated for May and Saudi Arabia's decision to reduce official selling prices for the upcoming month. On the geopolitical stage, President Trump mentioned that the United States will engage in direct talks with Iran concerning its nuclear program, while also cautioning that Iran would face significant peril if these negotiations fail.