Oil retreats after agreements between Russia and the United States

USOIL

Oil is trading above the support level of $65.50, and prices are likely to move sideways between the resistance level of $68.00 and the mentioned support level during today’s trading session.

Crude oil prices saw a slight decline today after Russia agreed to U.S. President Donald Trump’s proposal to halt attacks on Ukraine’s energy infrastructure for 30 days. This agreement could lead to an increase in Russian oil supplies in global markets, affecting prices. Brent crude futures dropped by 0.2%, reaching $70.44 per barrel, while West Texas Intermediate (WTI) crude fell by the same percentage, settling at $66.75 per barrel.

Additionally, data from the American Petroleum Institute (API) revealed a rise in U.S. crude oil inventories by 4.59 million barrels in the week ending March 14, further adding pressure on prices. Global trade tensions, particularly concerning U.S. tariffs on Canada, Mexico, and China, have negatively impacted oil demand forecasts, contributing to the price pressure.

Market volatility in the oil sector is expected to continue in the near term, with investors awaiting official inventory data from the U.S. Energy Information Administration (EIA), which is expected to show an increase in stocks. Geopolitical developments and trade tensions will remain crucial factors in determining the future direction of oil prices.

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