WTI oil prices fell at the market open, trading below $56 per barrel. Crude has come under pressure due to the worsening global economic outlook, primarily driven by the trade disputes initiated by President Trump, which have forced a downward revision of demand expectations. In this context, the announcement by OPEC+ of planned production increases has added further pressure on prices. Increasing supply at a time when demand expectations are weakening typically leads to lower prices — and that is what we are seeing today. On the other hand, geopolitical turbulence in the Middle East — which flared up again over the weekend, as Houthi rebels in Yemen, backed by Iran, launched a missile towards Israel — could lead to further escalation and limit the downside for oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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