Oil price movements today
Oil prices rose on Tuesday for the fourth consecutive session, supported by market optimism about a temporary lull in the trade war between the United States and China after the agreement to reduce tariffs for 90 days. However, concerns remain about the OPEC alliance's commitment to plans to increase production, which keeps prices under the influence of uncertainty.
Customs duties agreement supports oil demand
The announcement of the cessation of tariffs between the two economic giants contributed to strengthening investor appetite for high-risk assets, including oil, as the move exceeded the expectations of many analysts. Prices reached their highest levels in two weeks, with Brent crude trading around the level of USD 63.50 per barrel, a technical target that was expected in previous analyses.
Fears of an increase in OPEC supplies limit the gains
Despite the recent rally, the energy sector is still closely monitoring the movements of the OPEC alliance, especially as the date of the group's meeting next June approaches. The commitment of member states to the planned increase in production may put pressure on prices, especially if the volumes supplied exceed the level of global demand in light of slowing economic growth.
The most important question remains: Will OPEC continue the policy of accelerated pumping after June This is what traders are waiting for the answer to in the coming period, as prices may experience sharp fluctuations with any new developments.
Expectations of price movement in a narrow range
In the near term, oil prices are expected to remain volatile between support and resistance levels, with investors focusing on three main factors:
- The developments of trade negotiations between China and America after the end of the 90 days.
- OPEC decisions on production policy during the second half of the year.
- The pace of global economic recovery and its impact on energy demand.
While oil is experiencing a short-term improvement thanks to improving market sentiment, the continuation of the Ascent will largely depend on the balance between supply and demand in the coming months.
On the technical side, we are still waiting for oil to reach the levels of 63.50 dollars per barrel, as we mentioned in the analysis here
