Crude Stabilizes, Tariff Uncertainties Weigh On Sentiment
Market comments on behalf of Terence Hove Financial Markets Strategist Consultant to Exness
Crude oil futures are attempting to stabilize after four consecutive sessions of decline, with slight gains observed in prices. Optimism emerged as the U.S. exempted automakers from tariffs and discussions surfaced about potentially removing the 10% tariff on Canadian energy imports. This could provide some support to the oil market by easing trade tensions and mitigating disruptions
Despite the uptick, prices could remain weighed by tariff uncertainties and the global supply outlook. The stability of the oil market remains uncertain, with prices facing continued volatility. The bearish sentiment has been compounded by U.S. tariffs on Canadian and Mexican goods, including energy imports, raising concerns over reduced global oil demand and disrupted supply chains.
Meanwhile, U.S. crude stockpiles rose more than expected, which further weighed on prices. While supply remains abundant, weakening demand suggests that the global oil market could face sustained downward pressure.
The overall outlook remains cautious, with OPEC+ decisions to raise output continuing to pressure prices. While tariff adjustments may provide near-term relief, global demand uncertainties and rising supply levels suggest that crude oil prices could remain under pressure, limiting the potential for a sustained recovery.
