**********On Friday (January 24th), US crude oil continued to decline during the Asian trading session, trading around $74.39 per barrel, on a fundamental basistrumpproposedtariffThe uncertainty of how energy policies will affect global economic growth and energy demand has also dragged downoil price。

During his speech at the World Economic Forum in Davos, Switzerland, Trump stated that he will demand that Saudi Arabia and OPEC reduce oil costs.

Clay Seigle, Senior Researcher for Energy Security at the Center for Strategic and International Studies (CSIS), said, "Trump's call to lower oil prices will naturally be welcomed by consumers and businesses, but the US oil industry and other global suppliers are cautious about it

He added that the energy industry has been calling for increased investment in global oil and gas projects, but the decline in oil prices may raise concerns about the economic viability of new projects.

The US Energy Information Administration (EIA) announced on Thursday that despite a slowdown in refining activities, US crude oil inventories fell to their lowest level since March 2022 last week.

But the decline was smaller than analysts' expectations. Causing downward pressure on oil prices, the current fundamentals are unfavorable for oil prices, and supply side pressures and uncertainty in global economic growth have led to a continuous decline in oil prices.

On the technical level, there is a need for a pullback after a continuous sharp decline, mainly waiting for stress testing. The data for this trading day is relatively limited, and attention is mainly focused on technical corrections.

Federal ReserveThe meeting is approaching, and Trump is pressuring for an immediate interest rate cut

US President Trump stated on Thursday that he will demand an immediate interest rate cut and other countries should follow suit, marking his first strong attack on the Federal Reserve's monetary policy since taking office on Monday.

Trump said at the World Economic Forum in Davos, Switzerland on Thursday, "As oil prices fall, I will demand an immediate interest rate cut, and similarly, global interest rates should all come down

Afterwards, Trump stated at the White House that he hopes the Federal Reserve will listen to his opinions on interest rate issues and he will consider discussing this matter with Federal Reserve Chairman Powell.

New York Fed President Williams stated last week that the uncertainty surrounding government policy actions makes it difficult to provide guidance on the prospects of monetary policy at present.

The economic outlook remains highly uncertain, especially in terms of potential fiscal, trade, immigration, and regulatory policies, "Williams said.

Therefore, our decisions on future monetary policy actions will continue to be based on overall data, the evolution of the economic outlook, and the risk of achieving dual mission goals

Many economists and investors believe that Trump's plans to impose massive tariffs on US trading partners and expel a large number of illegal immigrants pose a real risk of reigniting inflationary pressures.

The next question is whether Federal Reserve officials consider price increases to be a one-time event or the beginning of a more sustained uptrend that may require interest rate hikes to respond.

Some Federal Reserve officials believe that the inflation situation may soon be clear enough for the Fed to restart interest rate cuts.

On January 16th, Federal Reserve Governor Waller mentioned to CNBC the recent favorable price pressure data, "If we continue to see such data, we have reason to believe that interest rate cuts may occur in the first half of this year

Waller was elected as a member of the Federal Reserve Board by Trump in 2020, and he is also skeptical about whether Trump's envisioned trade tariffs will push up inflation as many economists believe.

He said on January 8th, 'If tariffs do not have a significant or sustained impact on inflation as I expected, then they are unlikely to affect my view on appropriate monetary policy.'.

On a technical level, after a significant decline in the daily chart of US crude oil, it has returned to the previous intensive support range. The correction of oversold short-term technical indicators is nearing its end, and the main focus is on the rebound correction. At the daily chart level, it is important to pay attention to whether the $74 integer level has fallen below.

At 10:13 Beijing time, US crude oil is currently reported at $74.42 per barrel.