Lagos — The crude oil market recorded some uncertainty after a rebound and could see growing volatility and pullback risks. Concerns over tighter global supply could continue to provide support, driven by US tariff threats on Venezuelan oil buyers and ongoing sanctions on Iranian oil. Geopolitical risks could heighten market uncertainty, as traders remain cautious about any developments that could exacerbate supply disruptions.
Meanwhile, the proposed 25% tariff on imported cars by the US could dampen sentiment in the oil market, limiting the long-term upside for crude prices. Uncertainty around the developments in US trade policy could continue to affect sentiment. In this regard, threats of new tariffs on the EU and Canada could add to the concerns.
Traders could focus on new economic data to gauge the impact on the oil market. Attention could turn to US GDP growth data. The latter could affect sentiment as traders assess the direction of the US economy and the impact on the demand for oil products.
* Maria Agustina Patti Financial Markets Strategist Consultant to Exness
