Lagos — Crude oil futures opened lower after a three-day rebound as traders reacted to an increase in crude inventories in the US. The figures were also higher than expected. However, the market could remain volatile as traders consider the economic and geopolitical developments.
The decline in U.S. gasoline and distillate inventories could support demand expectations, while concerns over supply disruptions in Russia could push prices up. While these factors are stabilizing the market, the outlook remains uncertain.
Geopolitical tensions are influencing market sentiment. A prolonged conflict could further strain global oil supplies. On the other hand, any progress toward peace could reduce geopolitical risks, potentially easing supply concerns and lowering prices.
Traders could also monitor any developments from OPEC, which could delay its planned production hikes. Increased volumes could put a weight on prices, which are near a multi-year low.
*Joseph Dahrieh, Managing Principal at Tickmill
