Recently, oil prices have been consistently falling. This is because global demand is expected to decline and worries about the economy as a whole are growing. While oil prices have historically been affected by problems with supply, the current drop in prices seems to be mostly caused by lower demand, which is being fuelled by global taxes and slower economic activity in key markets.

In order for buyers to make sense of the recent price changes, it's important to know what the underlying factors are that are causing these changes and how they are affecting the short- and medium-term trends for crude oil. 

Tariffs and the Demand Side of Things 
New tariffs on goods and services around the world have caused people to worry about trade, investment across borders, and production. These things are especially important for oil markets because they are connected to manufacturing and transportation around the world.

When taxes slow down global trade, energy use also slows down, especially in industries that use a lot of oil, like ships, aeroplanes, and goods. Traders are taking into account the chance that less desire for goods around the world will cause a real drop in oil use, especially in developing markets and countries that depend on production.

Futures markets have shown that demand is weak. Both Brent and WTI contracts are going down, even though prices usually go up in the first half of the year because of natural factors.

OPEC's Plan for Action 
On the supply side, OPEC and its partners have been keeping a close eye on things. In their most recent report, the group said again that they were committed to keeping the market balanced, but they didn't say anything about new production cuts.

Instead, OPEC extended the voluntary production limits that were already in place until the end of the current quarter. This showed that they were being careful but also taking action. The goal of this move is to get rid of the extra supply and keep prices stable while demand falls, without making the market even tighter, which could hurt an already weak economy.

Traders should pay attention to this change. Even though there were no new cuts, the fact that supply management methods were kept in place shows that OPEC is still aware of the risks of prices falling and is ready to act if prices drop even more or if stocks start to rise.

Technicals of the Oil Price and How the Market Feels 
Technically, the price of oil has broken below important support zones, which has made short-term traders more gloomy. The price has stayed in a narrow band, but it has been trending lower, with lower highs and lower lows showing up on daily charts.

Volume profiles also show that buyers are becoming less interested, while open interest in put options has grown. This means that more traders are protecting themselves against possible losses.

Money managers have cut back on their net long bets in oil futures, which shows that big investors' feelings have also changed. This decrease shows a conservative stance in a market that lacks a strong underlying trigger for a short-term bullish turnaround.

A Look at the Macro Drivers 
In the next few weeks, oil's movement will depend on a number of global factors, including: 
Traders in oil will be paying close attention to figures on the global factory PMI. Weak numbers could put more pressure on oil because they are linked to the need for energy in the industrial sector.

Inventory reports from important hubs like the U.S. and Asia will give you an idea of how supply and demand are being met right now. Inventories going up could mean that people are buying less.

Changes in currencies, especially the value of the U.S. dollar, will also have an effect on oil prices. When the dollar gets stronger, oil costs more in currencies other than the dollar, which can lower demand.

What Traders Need to Know 
Short-term trades can take risks and make money with the current instability in oil prices. People who trade futures or CFDs should keep an eye out for breaks during the day around important psychological levels like $70 for Brent or $65 for WTI. Short-term moves will also continue to be shaped by how people respond to inventory reports and economic signs.

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Traders who are looking at the long term should look at larger global trends. If economic growth keeps slowing down and trade activity drops even more, oil prices may keep going down. However, a strong turnaround scenario could be created by combined action from OPEC or a sudden rise in demand, possibly due to infrastructure improvements or changes in the seasons.

In conclusion 
The price of oil is still high because of careful supply control and falling world demand. Tariffs have made the demand picture even less certain, and the slowdown in global growth is still making people less optimistic about spending. Traders need to keep an eye on both basic changes and underlying shifts because OPEC is keeping a close eye on things and macro signs are sending mixed messages. 
When the market is this volatile, it's still important to be flexible and control your risks. This time, the next big move in oil prices might not come from changes in supply, but from changes in demand around the world.