Crude oil futures traded within a narrow range as geopolitical tensions and seasonal demand dynamics balanced market sentiment, Exness Senior Financial Markets Strategist Dat Tong noted Tuesday.
Prices found support from looming U.S. and European sanctions targeting Russian oil exports, with traders closely monitoring potential supply disruptions following former U.S. President Donald Trump’s pledge of new policy announcements.
Industry reports indicate robust short-term consumption during the Northern Hemisphere’s peak summer season, where transportation fuel and power generation needs are bolstering demand. China’s crude imports further reinforced bullish sentiment, hitting their highest daily volume since August 2023 in June.
These gains remain partially offset by rising OPEC+ output and U.S. tariff negotiations, Tong observed. While OPEC members’ production hikes have added downward pressure, analysts highlight a potential output pause after September could tighten supplies. Ongoing U.S.-led trade discussions continue fueling economic uncertainty, potentially dampening global growth and fuel consumption.
Market participants maintain cautious positioning ahead of clarity on sanctions and OPEC’s next supply decision.