Lagos — Crude oil futures climbed on Monday as lower-than-expected U.S. inflation data raised some hopes for potential policy easing. Market sentiment also improved after the U.S. Senate passed legislation to avert a government shutdown.
Despite the positive start to the week, concerns about a growing supply surplus persist, capping potential gains. Last week, oil prices declined reflecting worries about global economic growth and weaker demand forecasts, including projections suggesting China’s oil consumption may peak in 2027.
In Europe, the resumption of crude flows via the Druzhba pipeline after a brief halt eased immediate supply worries. However, the market remains wary of excess supply outweighing demand, which could limit price recovery.
*Joseph Dahrieh, Managing Principal at Tickmill
