Lagos — Crude oil futures are attempting to stabilise following last week’s heightened volatility, driven by escalating trade tensions between the U.S. and China.
The imposition of higher tariffs by both sides has intensified concerns over global economic growth and its implications for energy demand.
China’s weaker inflation data and continued deflation in producer prices reflect the fragility of its economic outlook, raising further doubts about the strength of global fuel consumption.
Despite these macroeconomic pressures, crude appears to be finding support above the USD 60 – USD 61 per barrel range. U.S. drilling activity saw the sharpest weekly decline in rig counts since mid-2023 as producers anticipate more demand softness.
Moreover, geopolitical developments, including the United States’ consideration of measures to restrict Iranian oil exports, may contribute to a tighter supply outlook, providing near-term price support.
*Tahir – Senior Market Strategist at Exness
