Crude oil prices edged up in early Thursday trading as tensions in the Middle East flared once again. Traders are factoring in a heightened risk of disruption to Gulf oil supply after US forces struck Houthi positions in Yemen. At the same time, Israel resumed ground operations and airstrikes in Gaza, seemingly marking the end of the US-brokered ceasefire. Despite this, price gains remained modest, capped by a bearish demand outlook, as global economic activity appears set to slow. This sentiment was reinforced by Federal Reserve Chairman Jerome Powell, who spoke yesterday after the central bank kept interest rates on hold. Powell warned of resurgent inflationary risks coupled with a potential economic slowdown, painting a scenario that could weigh on oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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