Lagos — Crude oil futures remain volatile, despite a strong rebound during Wednesday’s session. Oil prices declined on Thursday as U.S.-China trade tensions remain high, with President Trump raising tariffs on Chinese products to 125%.
While a 90-day pause on tariffs for other countries was announced, the uncertainty stemming from the trade tensions weighed on market sentiment. Concerns over global economic growth and oil demand have contributed to ongoing volatility in the oil market.
While the market found support on Wednesday, the optimism surrounding the tariff pause may be short-lived, as demand-side risks persist, particularly regarding China’s economic outlook.
Moreover, mixed supply signals have further complicated the market. These include the potential for increased output from OPEC and disruptions in oil infrastructure, such as the temporary shutdown of the Keystone Pipeline following a spill. Mixed data about US crude inventories could also contribute to the uncertainty.
*Wael Makarem Financial Markets Strategists Lead at Exness
