WTI oil prices fell below $57 in early Friday trading, touching a five-month low. The price of crude has been on a downward trend since briefly reaching $78 in June, driven by the twin forces of weaker demand expectations and rising supply. Economic uncertainty stemming from ongoing tariff-related threats to global growth has led to downgraded forecasts, dampening oil demand prospects. At the same time, higher output from OPEC+ and recent reports of talks between Presidents Trump and Putin — which could pave the way for Russian crude to re-enter mainstream markets and increase global supply — have added further downward pressure. Against this backdrop, the overnight release of US crude inventory data, showing a larger-than-expected rise in stockpiles, reinforced the view among traders that supply continues to outpace demand, weighing further on prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.