In Tuesday’s trading, oil prices dipped as the U.S. dollar gained strength. This slight retreat comes after oil’s price increased by more than 1% on Monday.
Despite this, the forecast remains somewhat bullish due to ongoing tensions between Russia and Ukraine, which pose a risk to the global oil supply.
West Texas Intermediate (WTI) for May fell by 0.40% to $81.62 per barrel, and Brent for June dropped by 0.52% to $85.63 per barrel.
These movements were noted on their respective exchanges: Nymex and ICE.
Analysts from Citi highlighted a possible rise in Brent to $90 in the near term, facing resistance at $95, a peak not seen since 2022.
They see a chance for prices to edge between $88 and $90 if the upward trend persists into the second quarter.
Goldman Sachs reported that Ukrainian strikes on Russian energy infrastructure halved production, potentially taking weeks to restore.
City Index notes elevated oil prices post-spike, with attention on potential supply disruptions.
The market is also anticipating the release of U.S. PCE inflation data this week.
Alef Dias highlighted the U.S. elections’ investor significance, suggesting a Trump win might diverge from Biden’s climate efforts.
Certain usually bipartisan biofuel policies could face jeopardy. Trump’s first term illustrated this through refinery waivers from renewable fuel standards.
These insights underscore the delicate balance in oil markets. Geopolitical tensions and distant policy decisions can sway prices and investor strategies.