"Oil prices were down today, after a rebound and consolidation. As geopolitical tensions between the US and Europe and trade risks declined, focus is returning to the market's fundamentals. President Trump stepped back from tariff threats linked to the Greenland dispute, reducing the immediate demand overhang. The oversupply expectations for 2026 could continue to drive the market to the downside. While the IEA raised its 2026 demand-growth view, it still warned that supply is set to outpace demand."
"At the same time, temporary supply disruptions in Kazakhstan could drive some volatility in the market, although their impact might not be long-lasting. OPEC+'s policy could also provide the market with some support as the organisation maintains its oil production increase freeze. The market could react to the release of the EIA crude inventory data later today. The latter is expected to show a 1.1 million increase for crude, a 1.7 million increase for gasoline and a 0.2 decline for distillate."
Oil prices eased after a rebound and consolidation as geopolitical tensions between the US and Europe and trade risks declined and attention returned to market fundamentals. President Trump stepped back from tariff threats related to the Greenland dispute, reducing immediate demand concerns. Expectations of an oversupply in 2026 could continue to pressure prices despite the IEA raising its 2026 demand-growth view while warning that supply will outpace demand. API data showed rising US crude stocks that weighed on sentiment. Temporary supply disruptions in Kazakhstan could cause short-lived volatility. OPEC+ maintaining a freeze on production increases may provide some support. EIA inventory releases and deviations from estimates could trigger temporary market volatility.
Read at London Business News | Londonlovesbusiness.com
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