Lagos — Crude oil markets exhibited some volatility on Friday. While the market showed positive signs at the very end of the trading session, prices remained on a decline this week. This overall negative weekly trajectory reflects prevailing concerns surrounding supply dynamics and demand prospects that dominated trading activity.
Supply concerns intensified as traders focused on OPEC+’s cohesion. News surrounding Kazakhstan’s disagreement over production quotas and prioritization of national interests fueled market concerns about potential oversupply and the group’s ability to manage the output effectively. This comes at a time when output increases are planned for May. A potential deal with Iran could also see more crude arrive on the market, weighing on prices. Similarly, a peace deal in Eastern Europe could see oil prices retreat.
On the demand front, persistent uncertainty regarding US-China trade relations continued to dampen sentiment. The lack of confirmed progress on tariff negotiations, despite conflicting statements from the US and Chinese administrations, could continue to affect expectations. The uncertainty adds to the worries about global economic growth and the potential impact on future oil consumption.”
Analysis by Quasar Elizundia, Expert Research Strategist – Pepperstone
