Crude oil prices plunged sharply after Trump tariff announcement. It hits a high of $72.22 yesterday and currently trading around $67.39.
EIA Reports Unexpected Inventory Surge
The most recent weekly petroleum status report issued by the EIA on April 2, 2025, reported a surprise build-up of 6.2 million barrels in U.S. commercial crude oil inventories to the level of 439.8 million barrels, roughly 4% lower than the five-year average. This growth was due to increased imports, predominantly from Canada, perhaps as a response to expected tariffs, as inputs to refineries fell to an annual average of 15.6 million barrels per day with 86% utilization capacity. Gasoline inventories fell, but distillate and propane-propylene inventories rose, so the market reaction was initially a mixed one under pressure from the inventory build but later influenced by economic uncertainty and geopolitical tensions
Price Resistance and Support Levels
The near-term resistance is around $68.65; any breach above this level could push prices higher to $69.10/$70/$70.60/$71.26/$72.11/$72.85/$73.06/$74.32/$75. On the downside, immediate support is at $67.15 violation below targets of $66/$65.50/$65.25.
It is good to sell on rallies around $69.25-30 with a stop-loss of around $70.60 and a target price of $66.
