Crude oil futures could remain vulnerable to more volatility due to ongoing Russia–Ukraine peace talks.
A peace resolution could lead to the easing of sanctions on Russian oil and lead to an increase in global supply which could weigh on prices.
While stable oil demand forecasts offer market support, the potential for additional Russian barrels to enter the market could offset this, creating a cautious outlook.
Geopolitical uncertainty continues to have an important impact on the oil market, with any significant price movements largely dependent on the progress of these discussions.
Meanwhile, U.S. energy companies have increased their oil and gas rig count for three consecutive weeks. This indicates potential growth in future production, adding more supply to the market. However, without a corresponding increase in demand, this could exacerbate concerns about oversupply. Furthermore, ongoing trade tensions, related to tariffs, present risks to the oil market. A global trade war could reduce economic growth and energy consumption, further pressuring oil prices.
