Lagos — Crude oil futures could remain at risk amid traders’ caution and rapidly changing market conditions. Sentiment was mixed after yesterday’s US crude inventory data.
A larger-than-anticipated draw of crude stocks contrasted with a bigger-than-expected build in U.S. gasoline and diesel inventories, clouding the outlook of the market.
However, Saudi Arabia’s July price cut for Asian crude buyers fueled concerns, in addition to the country’s intent to pursue larger crude output. This comes after OPEC+’s recent agreement to raise output by 411,000 barrels per day in July.
Broader macroeconomic uncertainty, notably ongoing U.S.-China trade tensions and fears of a global slowdown, could continue to weigh on market sentiment as well.
At the same time, geopolitical tensions could continue to provide a floor for the market. Against this backdrop, oil prices are likely to remain range-bound as the market grapples with elevated supply, demand concerns and geopolitical tensions.
*Christopher Tahir – Senior Market Strategist at Exness
