– Yet demand outlook remains weak
Lagos — Crude oil futures stabilized to a certain extent but could continue to experience volatility as market attention shifts back to potential supply disruptions due to sanctions on Russian tankers.
This follows a decline on Tuesday, driven by the U.S. Energy Information Administration’s (EIA) forecast of weaker oil prices in the coming years, as supply is expected to outpace demand.
The uncertainty surrounding these dynamics is weighing on global crude prices, with geopolitical concerns providing short-term support, but broader market sentiment remains cautious.
Meanwhile, the American Petroleum Institute (API) provided additional support, revealing a larger-than-expected decline in U.S. crude inventories, which suggests stronger-than-expected demand in the US. This drop in U.S. inventories could help stabilize global crude prices in the short term.
*Hani Abuagla Senior Market Analyst at XTB MENA
