#oil-prices

#oil-prices

WTI crude oil futures retreated below USD 61 per barrel on Tuesday, as persistent oversupply fears overshadowed recent OPEC+ policy decisions. Forecasts of a significant global surplus by 2026, potentially as high as 4 million barrels per day, could continue to weigh on sentiment and push prices lower. Surging output from non-OPEC+ producers, including the United States, Brazil, and Canada, could drive the expected supply glut.

The upward move in oil comes as investors digested signs of trade relief following recent remarks by U.S. President Donald Trump, alongside stronger-than-expected Chinese trade data. According to Reuters, the rebound was further supported by a series of potential geopolitical flashpoints, from rising tensions in Ukraine to renewed risks of escalation in the Middle East, that together injected a fresh risk premium into energy markets.

Oil prices declined on Friday, after settling around 1.6% lower in the previous session, as the market's risk premium faded after Israel and Hamas agreed to the first phase of a plan to end the war in Gaza. "Finally having some kind of peace process in the Middle East is lowering the shoulders a little bit," said Bjarne Schieldrop, chief commodities analyst at SEB. This could ease fears about crude carriers passing through the Suez Canal and the Red Sea, he said.

Chinese markets continued to show resilience today, with improved PMI surveys offering a glimmer of hope for the broader economy. The latest manufacturing PMI climbed to a six-month high of 49.8, edging closer to the key 50 threshold after a six-month period of contraction. The data, coupled with renewed optimism around Chinese tech stocks, helped the Hang Seng rise 0.9%, with traders increasingly viewing Chinese AI names as a means to diversify from the Mag7 names.

Higher U.S. tariffs against a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil.

To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term. Oil producers and countries are cutting back spending more dramatically than current oil prices would normally necessitate.

Fuel prices in the UK are rising due to global instability, with Brent crude oil prices increasing from $68 to $78 per barrel in July, leading to higher retail costs.

Despite the ongoing uncertainties in the market, including geopolitical tensions and tariffs, U.S. equities are bouncing back, showing signs of resilience under current conditions.

President Trump announced a ceasefire between Israel and Iran, easing fears of an oil supply crisis and eliciting mixed reactions in stock markets.

The exact figure of $110 is based on the assumption that oil tanker traffic through the Strait of Hormuz would decrease by half for a month.

The bombing of Iran's nuclear facilities has caught traders off guard, as financial markets showed unexpected calm due to uncertainties surrounding future retaliation and the timing of the strikes.

Traders are in a largely risk-off mood, weighing the chances of further escalation in the Middle East and possible Iranian retaliations.

Expect oil to open with a sharp 7-10% gap up as risk premiums surge. But don't be fooled, this may not last...

Wael Sawan emphasized the careful management of shipping in the Middle East due to rising tensions, highlighting the significant uncertainty in the region caused by recent conflicts.

"The paradox of the escalating Middle East conflict is that the Tehran regime is one of Russia's few allies, however it is not Moscow that is being harmed by the situation, but Kyiv."

European stock markets are opening in the red, with London’s FTSE 100 down by 0.5% and Germany’s DAX dropping nearly 1% amid geopolitical tensions.

We have, in the past, supported Israel when there have been missiles coming in. I'm not going to comment on what might happen in the future, but so far, we haven't been involved, and we're sending in assets to both protect ourselves and also potentially to support our allies.

"An Israeli attack on Iran poses a top ten of our global risk, but Asian markets are expected to recover quickly as they have relatively limited exposure to the conflict and growing ties to unaffected Saudi Arabia and the UAE."

Global oil prices have fallen below $64 a barrel, signaling relief for consumers as fuel prices in the UK decline to their lowest in nearly four years.