Lagos — Oil prices rebounded to a certain extent after their recent fall. While the market could remain under pressure, prices gained in reaction to Trump’s comments on Iranian crude. Sanction threats could limit oil supplies from the country.
However, concerns over supply levels could continue to weigh on expectations. OPEC+ members are expected to increase production by 411,000 barrels per day this month, accelerating the unwinding of previous cuts. Adding to supply-side pressure, reports indicate Saudi Arabia is signaling a willingness to tolerate lower prices to defend market share, fueling expectations of further output increases.
Simultaneously, fears of weakening global demand persist. Recent data confirmed a contraction in manufacturing activity in the US and China. These macroeconomic headwinds, compounded by ongoing trade tensions, overshadow potentially supportive factors, such as the larger-than-expected draw in US crude inventories reported yesterday.
All eyes are now on the upcoming OPEC+ meeting for clearer signals on future production policy and market direction.”
* Analysis by Quasar Elizundia, Expert Research Strategist – Pepperstone
