Lagos — Crude oil futures could face additional volatility as markets face output increases and geopolitical risks. Geopolitical concerns could affect the market and support prices.
Heightened tensions in the Middle East and Eastern Europe could fuel traders’ caution. Potential sanctions on Russia, alongside Iran’s stalled nuclear negotiations, could also fuel risks.
Additionally, the extension of U.S.-EU trade talks until July has alleviated immediate concerns over the impact of tariffs on fuel demand.
However, traders await OPEC+’s production decisions. While expectations point to a 411,000 barrels per day increase in July, formal confirmation from key producers, including Russia, could weigh on the market. Increased output could contribute to the current downtrend in oil prices.
Looking ahead, traders could turn to the release of the US inventory data. Another increase in stocks could affect demand expectations and weigh on prices.
*Milad Azar Market Analyst at XTB MENA
