Lagos — Crude oil futures continue to experience significant volatility, swinging from a low of USD 55 this week to a high of USD 63 yesterday before subsiding.
The market remains exposed to the ongoing trade tensions between the U.S. and China and the concerns that they could negatively impact global economic growth and reduce oil consumption.
The recent decisions by the U.S. and China to increase tariffs have raised fears about a potential slowdown in global trade and continued confrontation between the two countries.
While oil gained some ground, forecasts continue to point to downside risks. In this regard, the U.S. Energy Information Administration revised its global oil demand forecasts down.
Supply-side uncertainty has also contributed to the volatility. Market participants could continue to monitor any changes in OPEC’s production policy and its impact on price.
These developments have contributed to a broader bearish sentiment in the oil markets as economic concerns persist.
*Milad Azar Market Analyst at XTB MENA
