WTI oil prices are trading flat, around the $64 mark, at the opening of the European session. The market finds itself caught between opposing forces. On the one hand, the prospect of increased supply from OPEC producers, as the self-imposed output cuts come to an end, combined with the expected drop in demand as the northern hemisphere’s summer driving season winds down, is creating downward pressure on crude prices. On the other hand, the war between Russia and Ukraine shows little sign of easing, with fresh Russian attacks reported on Thursday, raising the likelihood of further US sanctions. These, alongside the recent tariffs imposed on India for purchasing Russian oil, could restrict supply in global markets. Against this backdrop, oil prices are expected to remain close to current levels in the short term, while traders keep a close eye on any escalation of US sanctions that could trigger upward moves.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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