Crude oil prices stabilized to a certain extent today after multiple sessions in the red.
The market could remain exposed to more volatility as traders continue to monitor the developments around demand and supply.
The market could remain under pressure from production increases by OPEC+ countries. At the same time, increasing pressure from the US on Russian crude importers could limit the availability of oil on the market, driving prices higher.
On the demand side, markets could find support in the higher-than-expected US inventory draws. Both API and EIA figures showed that crude stocks declined faster than anticipated, which could support a more bullish view on demand in the US.
At the same time, traders could continue to monitor the state of the economy in the US and other major oil consumers in a bid to assess demand levels, in particular as US tariffs could affect growth on a global level. Meanwhile, potential developments in US-Russia diplomatic talks could reduce risks on the market, weighing on prices.
