Lagos — Crude oil prices could remain under some pressure and could record some volatility while they stabilized to a certain extent following last week’s rally. The market could see price corrections after its recent rally as concerns around demand levels remain.
Traders could continue to monitor the economic developments in major oil importing countries to gauge the demand potential. In this regard, rising supply from non-OPEC countries and concerns around weak demand from China could put the market under more pressure.
Meanwhile, expectations of tightening supply from Russia and Iran due to Western sanctions could support crude prices and could put a floor under the market. At the same time, stronger demand for Middle Eastern oil was reflected in the recent rise in Saudi Arabia’s oil prices for Asia, the first increase in three months.
Market participants’ are now focusing on potential policy shifts including Biden’s recent measures to restrict oil and gas developments which could affect supply levels. Additionally, US crude inventory data remains a critical factor in assessing near-term dynamics.
*Maria Agustina Patti Financial Markets Strategist Consultant to Exness
