Crude oil
As European trading begins, crude oil prices are holding onto the gains from the previous session, which saw the cost of the barrel climb over 2.5%—the biggest one-day increase in two weeks. The key drivers behind this surge include expectations that OPEC+ will extend its voluntary output cuts into April and heightened geopolitical instability. The ceasefire between Israel and Hezbollah remains fragile, while a resurgence of rebel activity in Syria is reigniting conflict where several major Middle East oil-producing nations have interests. Adding to the uncertainty, South Korea experienced political shock on Tuesday after the President unexpectedly declared martial law. Given this context, it is unsurprising that oil prices, which are highly sensitive to geopolitical turbulence, have risen. However, the upside remains constrained by weakening global demand, particularly from China. Some analysts predict that the world's largest oil importer may see its share of global demand decrease in 2025, adding a bearish element to the outlook for crude.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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