Oil prices experienced volatility, initially rising before declining. A combination of factors, including Middle East tensions, trade disputes, a US winter storm, and the restoration of Kazakh oil exports, influenced market sentiment. Negotiations between Russia and Ukraine remain ongoing, adding to the uncertainty.
- WTI crude oil futures fell below $61 per barrel.
- Tensions in the Middle East remain a key focus due to the deployment of a US aircraft carrier strike group.
- President Trump threatened 100% tariffs on Canada if it finalized a deal with China.
- A US winter storm boosted heating demand, supporting prices.
- Kazakh’s oil exports are expected to return to normal.
- Russia-Ukraine talks ended without a breakthrough, with continued negotiations planned.
The energy market appears sensitive to a range of global events. Geopolitical instability, particularly in key producing regions, can create upward pressure on prices due to potential supply disruptions. Trade policy announcements and weather patterns can also influence demand and, consequently, price fluctuations. The restoration of production capacity in other regions can offset some of these gains. Ongoing diplomatic efforts, even without immediate resolution, play a role in shaping market expectations.