Crude oil movements during this week

The global oil markets witnessed a strong upward wave today, as the prices of the two global commodities rose by more than 2%, in a marked improvement compared to their sharp decline during the previous session.

Prices reached 4-year lows on Monday, driven by growing fears of global oversupply, with the week opening on a bearish price gap.

Brent crude oil prices rose 2.2% to $61.50 per barrel, while West Texas Intermediate crude jumped 2.3% to $58.20 per barrel.

However, this rise is viewed as a technical correction, fueled by opportunistic buying at low prices, rather than a reflection of a fundamental improvement in market fundamentals.

The oil market is facing multiple pressures, most notably:

Increased production

with concerns that the OPEC+ alliance's strategy could change, potentially increasing supply in a fragile market.

Weak global economic growth

particularly with ongoing trade tensions and rising tariffs, is limiting energy demand.

Demand has declined

with oil prices falling 17-18% since the beginning of the year, amid concerns about slowing industrial growth.

What are the future expectations?

Expectations indicate that oil prices may remain under pressure until the end of 2025, especially if global economies do not experience a rapid recovery.

This scenario is closely linked to developments in US trade policy, which will play a pivotal role in determining global demand trends.