Crude oil prices are trading flat in early Tuesday, following the moderate gains of the previous session, sitting just above the $70 per barrel level. The recent gains came on the back of US-imposed sanctions on shipping operators linked to Iranian oil exports, as the US administration continues to apply pressure on Tehran’s primary source of revenue in an effort to prevent its Middle Eastern adversary from acquiring nuclear weapons. However, the gains in oil prices were modest and are unlikely to signal a change in trend. The outlook for crude prices remains skewed to the downside, with uncertainty over future oil demand as the threat of US tariffs casts a long shadow over global economic growth. At the same time, ongoing negotiations for a peace deal between Ukraine and Russia could lead to an easing of sanctions on Russian oil exports, increasing supply—a scenario that would further weigh on oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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