By George Pavel

Crude oil futures continue to reverse their gains from the recent rebound, driven by expectations that a potential peace deal between Ukraine and Russia could ease sanctions. Such developments could reduce the risks of supply disruptions and could weigh on prices. However, the uncertainty surrounding developments toward a permanent peace could fuel some volatility.

Meanwhile, rising U.S. crude stocks have contributed to a bearish sentiment, with inventories increasing more than expected. This uptick could indicate that supply is outpacing demand, adding further downward pressure on oil prices.

The situation is compounded by concerns over President Trump’s potential tariff impositions, which have sparked fears of reduced global economic growth and dampened oil demand from other crude consumers. Together, these factors could weigh on prices in the near term, creating additional uncertainty in the market.

Traders could continue to monitor new economic data in the US, China and other large economic blocks for any impact on oil demand.

Pavel is General Manager at Naga.com Middle East