WTI crude prices declined in early Wednesday trading, falling below the $60 per barrel mark. The drop in oil prices reflects growing expectations of a global economic slowdown, which would, in turn, lead to reduced demand for crude and reduced pressure on the supply side. Investor sentiment remains subdued amid ongoing concerns over the US administration’s approach to tariffs. Although recent signals from Washington have been somewhat more conciliatory, unpredictability continues to characterise the current environment, weighing heavily on traders’ outlook. This sense of uncertainty was further underscored by data released yesterday, which showed a sharp decline in US economic sentiment in April. Adding to the bearish tone, US crude inventories rose last week, while reports surfaced suggesting that OPEC+ may accelerate its planned production increases. In this context—marked by ample supply and weakening demand expectations—further downside pressure on oil prices cannot be ruled out.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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