Oil Prices Slip Slightly, Investors Weigh Tight Supply, Economic Risks
Crude oil prices eased slightly after a recent sharp rise, as investors weighed dwindling US fuel inventories amid concerns about a global economic slowdown.
Gasoline stocks fell by 5.7 million barrels, much more than market expectations, boosting confidence in stronger seasonal demand.
However, ongoing geopolitical tensions and trade policy uncertainty continue to weigh on investor sentiment, causing price volatility to remain high.
OPEC Faces Challenges on Production Cuts Amid Strong Demand
Adherence to production cuts continues to be a challenge for OPEC as several major producers increase supply, making it harder for the cartel to control the market. Analysts expect global oil demand to remain firm at around 102.2 million barrels per day, but rising economic risks and changes in trade policy could weigh on price momentum in the longer term.
Market focus is now on upcoming supply data and potential disruptions to global energy infrastructure.
WTI Crude Oil (USOIL) Holds at Critical Level
West Texas Intermediate (WTI) crude oil was steady at $67.52 a barrel, down 0.03%, as traders assessed the balance between supply concerns and macroeconomic factors.
A key support level is at $67.01, if prices remain above this level, the outlook remains positive with resistance at $68.39 and $69.26. Conversely, if prices fall below $67.01, it could trigger further declines to $66.13 and $65.27.
Brent Crude Oil (UKOIL) Tests Critical Support Zone
Brent crude oil is trading at $70.83 a barrel, down 0.04%, but still above the key support level of $70.25. If the price holds above this level, sentiment remains positive with the next resistance at $72.03.
If the price manages to break through $71.66, it could trigger a surge to $73.38, signaling a shift in market momentum.
However, a failure to hold $70.25 could accelerate a decline to $68.80 and $67.61.
Market Outlook: Balance Between Supply, Demand and Macro Risks
As the oil market faces a complex landscape of tighter supplies, OPEC production uncertainty, and heightened economic risks, traders remain cautious.
The dynamics between supply constraints and macroeconomic uncertainty will be the determining factors for the next direction of oil prices. Investors are advised to continue monitoring oil inventory data and geopolitical developments, as these two factors will be the main drivers of price movements in the near term.
