Oil prices are poised to end the three-week decline
Crude oil prices are on track to snap a three-week winning streak, supported by rising fuel demand and alleviating concerns about the world trade war. Both Brent Crude and U.S. West Texas Intermediate (WTI) achieved around 1% in a week as investors responded to a more measured approach from Washington on tariff policy.
US President Donald Trump has filed recommendations by April 1 to order officials to consider mutual tariffs in countries that place obligations on US goods.
The Russian Ukraine Peace Conference is hampering market sentiment
Despite aggressive trade developments, the oil market is cautious about potential supply shifts from Russia. Market strategist Yeap Jun Rong noted that trade optimism could raise oil prices, but the likelihood that Russian oil could return to the market could make money. The lifting of sanctions in Moscow in the event of a peace agreement between Russia and Ukraine could significantly increase the global energy supply and put a strain on prices.
Trump reportedly began talks to mediate the conclusion of the conflict following separate debates between Russian President Vladimir Putin and Ukrainian President Voldimia Zelensky. Traders are closely watching these developments, as any solution can change the supply dynamics.
Stronger demand outlook supports price
Oil demand is expected to rise due to increased heated fuel consumption in Europe and a potential shift from gas to oil. The rising prices of natural gas across the continent could drive the industrial and power generation sectors and rely more on crude oil-based alternatives. This shift is combined with seasonal heating demands and could provide short-term support for prices.
Market Outlook: Carefully and bullish
As trade tensions ease and demand rises, there is room for further profits in crude oil prices. However, breakthroughs in peace negotiations for the Russian Ukraine and the potential return of Russian supply could limit the momentum of the upward movement. Traders need to closely monitor price action, with bullish biases above $71.51 and downside risk below $70.67.
