WTI crude oil prices rose after an early-week decline, supported by renewed concerns over potential disruptions to global supply amid escalating regional tensions. Prices rebounded from lows near $68.00 per barrel, though they continue to face resistance below the $72.00 level, despite trading roughly 12% higher compared to the range seen in May.
These movements come against a backdrop of geopolitical instability in the Middle East, where recent events and exchanges of strikes have heightened market caution. The situation has raised fears of supply disruptions, which have had a direct impact on price levels.
Meanwhile, Russian Deputy Prime Minister Alexander Novak has called on the OPEC+ alliance to reconsider its decision to increase output, arguing that current prices do not serve the interests of many producers. His remarks highlight the need for a balanced approach to supply and demand in order to maintain market stability.
On the economic front, investors are awaiting the release of the weekly U.S. crude inventory report from the American Petroleum Institute, which could influence short-term price movements. Forecasts also point to a potential decline in U.S. retail sales for June, which may increase the likelihood of the Federal Reserve adopting a more accommodative monetary policy stance, potentially boosting economic activity and supporting oil demand.
Stay informed about global markets through our previous analyses. and Now, you can also benefit from LDN company services via the LDN Global Markets trading platform.
