Oil Prices Waver: Economic Woes Trigger Sell-Off, Inventory Data Offers Hope

Crude oil prices showed a minor sell-off on the US economic slowdown and tariff concerns.  It hit a low of $67.19 at the time of writing and currently trading around $67.28.

For the week ended March 7, 2025, U.S. crude oil inventories rose by 1.448 million barrels to 435.2 million barrels, approximately 5% lower than the five-year average. Cushing, Oklahoma, crude stocks fell, while refinery inputs rose to 15.7 million barrels per day at 86.5% capacity. U.S. imports of crude oil averaged 5.5 million b/d, and the less-than-anticipated inventory build can be positive for crude oil prices, depending on world market conditions. The EIA is projecting tightening global oil markets through mid-2025 with lower output in Iran and Venezuela

Price Resistance and Support Levels

The near-term resistance is around $68; 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 $67.20 violation below targets of $66/$65.50/$65.25.

 It is good to sell on rallies around $69.25-30 with a stop-loss around $70.60 and a target price of $66.