#crude-oil

#crude-oil

The S&P 500 index was down 0.1% as of 12:15 p.m. ET, the Dow Jones Industrial Average was down 0.2%, and the Nasdaq composite was down less than 0.1%. Institutional investors are largely closed out of their positions for the year. The S&P 500 has climbed nearly 18% this year, helped by the deregulatory policies of the Trump administration as well as investor optimism about the future of artificial intelligence.

Crude oil markets opened the week on a firmer footing this Monday, recovering from last week's losses. Geopolitical developments reinforced risks on the market even as the 2026 surplus narrative keeps the upside limited. Traders could focus on geopolitical factors as US officials said Washington intercepted an oil tanker in international waters off the Venezuelan coast over the weekend, with another vessel being pursued under a seizure order tied to sanctions evasion.

Crude oil prices were volatile and retreated following a sanctions-driven surge on Tuesday. The market could remain sensitive to the possibility of fresh US sanctions and is assessing the measures targeting vessels involved in Iran's oil shipping network. Traders could also remain cautious ahead of Sunday's OPEC+ meeting on September 7th. The consensus anticipates that the eight members participating in voluntary cuts to maintain current levels, putting a pause to their production increases and potentially anchoring prices within the established range.

The prevailing softness reflects mounting concerns regarding global demand in the context of escalating trade tensions between the United States and its trading partners, including the European Union.

Crude oil futures are struggling to move above $67 due to mixed signals in the market, reflecting strong refinery activity and inventory issues.