Lagos — Crude oil futures traded with low volatility during the Asian session, attempting to stabilize after three sessions of sharp declines.
The earlier weakness was driven by concerns over Saudi output and data showing a contraction in U.S. economic growth. These developments raised questions about the balance between supply and demand, prompting a more measured tone in early trading.
Saudi Arabia has reportedly communicated a willingness to maintain current production levels despite falling prices, indicating it does not intend to support the market through additional supply cuts.
Simultaneously, several OPEC+ members are expected to advocate for an accelerated increase in output at their upcoming meeting. This outlook has weighed on prices further, as the market anticipates rising supply without a corresponding improvement in demand.
On the demand side, the U.S. economic slowdown and persistent trade tensions have added to a weaker global consumption outlook.
Despite a decline in U.S. crude stockpiles, overall sentiment remains subdued due to broader macroeconomic headwinds and reduced consumption in key markets such as India. These factors have contributed to a narrow trading range as market participants await more definitive developments from both producers and economic data.
*Joseph Dahrieh, Managing Principal at Tickmill
