Crude oil prices may rebound as supply tightens and geopolitical tensions ease, say experts

Crude oil costs may even see a restoration within the close to time period as constructive indicators emerge from the provision aspect and geopolitical tensions present indicators of easing, specialists stated on Saturday. Whereas demand considerations proceed to weigh on world sentiment, market specialists consider crude costs may bounce again if key technical ranges are sustained.

West Texas Intermediate (WTI) crude costs remained subdued on Friday, buying and selling close to the mid $65 vary amid skinny vacation buying and selling and weak world demand.

Nevertheless, analysts are pointing to a possible turnaround, particularly with key occasions just like the OPEC+ assembly and the US tariff deadline on the horizon.

Tejas Shigrekar, Chief Technical Analysis Analyst — Commodities and Currencies at Angel One Ltd, stated the crude oil outlook stays blended, however there are causes for cautious optimism.
He famous that whereas demand has been hit as a result of slowdowns in world manufacturing –particularly in China and the Eurozone — OPEC+ manufacturing cuts are nonetheless preserving world provide tight.
“These cuts, primarily led by Saudi Arabia and Russia, have helped stop a deeper fall in costs,” he defined.

“Even with softer demand projections from OECD nations, the coordinated output curbs are offering a flooring to costs,” Shigrekar stated.

“And until there is a main provide shock, crude futures are prone to stay in a broad vary, supported by strategic shopping for,” he acknowledged.

Geopolitical dangers, which had earlier pushed costs larger, have considerably eased after the ceasefire between Iran and Israel.

Iran’s renewed dedication to the Nuclear Non-Proliferation Treaty has additionally helped calm the market. Whereas tensions within the South China Sea and the Center East persist, there was no main disruption to world provide chains to this point.

Merchants at the moment are targeted on the July 5 OPEC+ assembly, the place a 3rd consecutive manufacturing hike of 411,000 barrels per day is predicted to be accredited for August.

From a technical perspective, Shigrekar believes a value rebound is feasible if WTI crude holds above the $62.70 help degree.

A break above Rs 5,780 may push home crude costs to Rs 6,000-Rs 6,200. But when help slips under Rs 5,550, we may even see a drop towards Rs 5,330 and even Rs 5,000,” analysts talked about.