"Oil traded higher today, although it remained close to its lows for the year. The market could continue to see some upside as traders react to increasing geopolitical tensions in Eastern Europe. The latter continues to affect energy infrastructure in the region and could impact oil supply levels in the near term. Additionally, the region continued to grapple with the lack of a breakthrough in peace talks."
"At the same time, markets continue to see a low probability of success in implementing a peace deal. As a result, sanctions on Russian crude could remain in place and limit the risks of additional oil supplies arriving on the market. However, oversupply concerns could still dominate the medium-term outlook. The IEA projects the market to be potentially oversupplied by up to 4 mb/d."
Oil traded higher while remaining close to year-to-date lows. Traders reacted to rising geopolitical tensions in Eastern Europe that continue to affect regional energy infrastructure and could reduce near-term oil supply. The region lacked a breakthrough in peace talks and markets assign a low probability to implementing a peace deal, meaning sanctions on Russian crude could remain in place and limit additional supplies. The IEA projects a potential medium-term oversupply of up to 4 mb/d. Traders continue to monitor production developments among major producers, including the US and OPEC, which left output on hold for Q1 2026.
Read at London Business News | Londonlovesbusiness.com
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