Crude oil prices remain supported by tight inventory levels, keeping bullish sentiment intact in the market, according to a weekly outlook from FOREX.com published on Saturday.
The report highlights that limited supplies are providing a floor under prices even as traders weigh broader economic uncertainties. FOREX.com notes that the current supply-demand balance continues to favor upward price movement in the near term.
Geopolitical factors have added volatility to the market. Bloomberg reported that oil jumped above $90 a barrel after former President Trump said the US plans to strike Iran again. That headline-driven spike underscores how sensitive prices remain to Middle East tensions.
At the same time, shipping flows through the Strait of Hormuz have shown a mild increase, according to TMGM trading. That development helped push WTI crude closer to the $80.00 mark, as some of the risk premium tied to potential supply disruptions eased.
Despite the recent pullback, monthly gains remain in sight, with traders closely monitoring shipping routes and inventory data, as reported by Geo News.
In Europe, retail fuel prices have not followed the same downward path as benchmark crude. The IRU noted that while Brent prices fell 11% during a recent lull, EU pump prices still climbed above two euros per liter, reflecting a lag between wholesale costs and consumer prices.
The combination of tight inventories, geopolitical flashpoints, and shifting shipping patterns leaves the oil market in a delicate balance. Traders will be watching for the next inventory report and any new developments in the Middle East that could reignite supply concerns.
