On Monday (February 3) during the European trading session, after US President Trump announced tariffs on Canada, Mexico, and China, crude oil prices soared at the opening on Monday, raising concerns about supply disruptions. These concerns outweigh the worries about the potential weak demand caused by tariffs.

Mexico and Canada have pledged to retaliate with their own tariffs, which could lead to a trade war that could impact global economic growth and trigger inflation. Energy products from Canada will be subject to a 10% tariff, while energy products from Mexico will be subject to a 25% tariff.

However, due to concerns that tariffs will cause import disruptions to Canada, the largest overseas supplier of US refineries, oil prices have risen.

Imposing tariffs on oil imports could disrupt the market and even make Trump's goal of reducing energy costs more challenging.

The OPEC February meeting will also be held today. However, this is not a formal policy-making meeting, and the group is only making recommendations to policy-making institutions. This meeting was held after Trump urged OPEC+to lower oil prices. Due to concerns about weak demand and sufficient supply from the United States, OPEC may stick to its plan to gradually increase oil production starting from April.

Crude oil technology analysis

WTI crude oil prices have rebounded from the support level of 72.50, crossed the 200 moving average, and advanced towards 75.00. If there is a meaningful movement above this resistance level, it will open the door to 76.50- a resistance level that can be traced back to the downward trend line in 2023- and continue to reach 80.00.

If the 200 moving average cannot be regained, the price may be revised downwards and support levels of 72.50 and the 50 moving average of 72.00 will be retested. If it falls below this level, the price will re-enter the familiar 72-67 trading range.