Oil prices rise as markets assess geopolitical developments and mixed demand signals
Oil prices opened slightly higher today after a 2% decline in the previous session, as traders continued to assess geopolitical developments related to Russian supplies and a mixed reading of the US inventories report.
Brent and West Texas crude prices slightly higher
Both Brent and WTI crude rose by 0.5%, with the former reaching $63.70 per barrel and the latter at $59.80 per barrel.
The rise reflects caution in the markets as uncertainty over demand and supply levels persists in the coming period.
Diplomatic moves ease Russian supply concerns
US President Donald Trump has sent a Pentagon delegation to Kiev to revive negotiations to end the war in Ukraine, a move that could help allay fears of a Russian supply disruption. I
f a political settlement is reached, it could pave the way for the lifting of some sanctions on Russian oil, which could restore some of the flows to global markets.
U.S. Inventories Report Sends Mixed Messages
U.S. crude oil inventories fell by 3.4 million barrels, data released showed, surprising markets that had expected a rise of about 100,000 barrels.
Gasoline inventories fell as a result of lower weekly consumption, reflecting volatility in U.S. domestic demand, one of the biggest drivers in the global energy market.
The impact of sanctions and supply growth on price action
remains to be seen In the coming period, all eyes will be on how sanctions against Russia will affect global trade flows and whether global supply growth can continue to outpace demand.
Geopolitical developments also play a key role in determining the direction of prices, especially in light of the market's sensitivity to any risks that could threaten supply stability.
