While Brent should retain a geopolitical risk premium, it is similarly forecasted to retreat toward $56-$57/b as supply growth from non-OPEC+ producers outweighs softening demand
Crude oil prices are holding firm this week as tensions between Iran and the US temporarily ease after Donald Trump indicated he does not intend to launch military action.
The current upward trajectory is primarily driven by a toxic mix of heightened geopolitical risks in the Middle East, infrastructure disruptions in the Caspian region, and significant capital inflows
Oil price outlook: The most significant downward pressure on oil prices this month stems from renewed optimism regarding the conflict in Ukraine.
Indian Rupee today: The domestic currency closed four paise lower at 88.75 on Monday against the greenback, according to Bloomberg
Since the conclusion of the Iran-Israel conflict, oil prices have retreated and stabilised within a broader trading range of around $6 per barrel
Geopolitical developments are a primary driver of market uncertainty. The Trump-Putin talks could either ease concerns over US sanctions on Russian oil or escalate tensions if negotiations falter.
Brent crude futures were up 40 cents, or 0.58 per cent, at $69.04 a barrel as of 1027 GMT. US West Texas Intermediate crude ticked up 45 cents, or 0.68 per cent, to $67.02 a barrel
The attacks, according to analysts at Rabobank International, expose wider risks to crude and natural gas supplies from the region despite the initial quick reversal of price gains for both markets
Crude prices have had the most volatile week in four years as the prices tumbled over 20 per cent in 4 trading sessions amidst the trade war turmoil
In the previous session (March 7), Sensex settled at 74,332.58, down 7.51 points or 0.01 per cent. Nifty50, on the other hand, settled 7.80 points or 0.03 per cent higher at 22,552.50
We remain bearish on oil prices for 2025, although Opec+ extension may hold prices from steep fall in Q1-2025
With Israel looking to carry out its offensive against Hezbollah to the next level, traders will monitor the evolving situation in Middle East closely for possibility of disruptions to oil supplies.
Oil recorded its first back-to-back monthly decline amid signs of sluggish demand in China and the United States raised concerns about future consumption growth.
Brent crude, WTI oil trading strategy today, Aug 27: We expect oil prices to face immediate resistance of $80 and the rally would find it difficult to sustain above it
Brent crude futures slipped 10 cents, or 0.1 per cent, to $80.59 a barrel by 1057 GMT. US West Texas Intermediate crude futures were down 19 cents, or 0.2 per cent, to $78.16 per barrel
With the U.S. market shut on Thursday for the Independence Day holiday, trading was thin and there was no settlement for WTI, but prices have risen this week on strong summer demand expectations in US
In the previous session, Brent gained 1.3% to settle at $87.34 for its highest close since April 30. WTI, meanwhile, had settled at an 11-week high of $83.88
The WTI holding on to support of $78 in Asian hours, retreating from three weeks high of $79.12. hit on Wednesday
Oil prices are moving higher after posting three straight weekly declines following Opec+ decision on June 2