Lagos — Crude oil futures opened higher on Friday, supported by geopolitical risks and supply concerns.
However, traders remain hesitant, which could lead to intraday volatility as they assess the real impact of these developments. Fresh U.S. sanctions on Iran have raised expectations of tighter global supply.
Additionally, OPEC+ announced a plan to curb excess production, reinforcing expectations of reduced output. If production cuts are maintained over the long term, the market could see additional support, helping prices rebound further.
While both Brent and WTI were on track for weekly gains, the outlook remains uncertain. China’s crude demand will be a key determinant of price stability, as economic conditions influence global consumption trends.
If demand strengthens, prices could stay supported, but any signs of slowing consumption or rising non-OPEC supply may introduce volatility.
*Joseph Dahrieh, Managing Principal at Tickmill
