Lagos — After weeks of downward pressure, oil prices have rebounded to a certain extent over the past two weeks. The recovery marks a notable shift in market sentiment, with both benchmarks recording weekly gains.
Escalating tensions in the Middle East have supported oil prices. Recent US military strikes against Houthi rebels in the Red Sea and ongoing Israeli operations in Gaza have heightened concerns about the region. However, developments in the Russia-Ukraine conflict could act as a counterbalance if peace talks succeed, creating more volatility.
The rebound in the market was further supported by the unexpected drawdown in US crude inventories, with the American Petroleum Institute reporting a substantial decrease of 4.6 million barrels last week, surpassing expectations. This development has provided fundamental support for the ongoing price recovery.
Adding to the market’s volatility, the United States’ announcement of new tariffs on Venezuelan oil buyers, set to take effect on April 2, 2025, has created ripples through the global oil markets. This policy shift, coupled with existing sanctions on Russian and Iranian oil producers, has raised concerns among traders.
In this regard, innovative trading platforms like Naga offer comprehensive solutions tailored to navigate these volatile conditions. With advanced analysis tools and a unique social trading ecosystem, traders can now access real-time market insights while following strategies of experienced oil traders through copy-trading features, allowing both newcomers and seasoned traders to implement balanced strategies across this complex commodity landscape.
*George Pavel General Manager at Naga.com Middle East
