Oil prices are under pressure due to renewed trade tensions, particularly between the US and the EU, which could weaken oil demand. While near-term supply risks from Iran have eased, the market continues to grapple with a significant supply surplus, even as tightness persists in specific regions due to disruptions. Investors are awaiting the IEA’s monthly report for further guidance.
- WTI crude oil futures fell below $59 per barrel.
- Renewed trade tensions between the US and the EU are weighing on energy demand.
- President Trump threatened to impose extra tariffs on some European allies.
- Near-term supply risks from Iran have eased.
- The market continues to grapple with a significant supply surplus.
- Tightness persisted in certain parts of the market, with disruptions in the Black Sea and a temporary halt at Kazakhstan’s Tengiz oil field.
- Investors are looking to the IEA’s monthly report for fresh insights.
The dynamics suggest a complex outlook for oil. While geopolitical factors have eased concerns about immediate supply disruptions, broader economic uncertainties and existing oversupply are creating downward pressure on prices. Regional supply constraints offer some support, but the market is sensitive to shifts in global economic activity and is closely watching forthcoming reports for a clearer picture of future supply and demand trends.