
Oil Eased, Trump-Putin Agreement Alleviates Supply Concerns, Demand Worries Persist
WTI crude oil prices remained capped under USD 68 per barrel before declining, driven by recent geopolitical developments. The agreement between Russia and U.S. President Donald trump to temporarily halt attacks on energy infrastructure in Eastern Europe has eased fears of further supply disruptions amid the Russia-Ukraine conflict. While this deal provides short-term stability, it remains uncertain how it will affect the market in the long run. Any reversal of this agreement or a shift in the U.S. or Russia's stance could quickly disrupt the market, leaving prices vulnerable to volatility.
Despite these developments, oil markets continue to face some downside risks, mainly driven by global economic concerns. U.S. tariffs on Canada, Mexico, and China have heightened fears of a recession, which could dampen oil demand. This economic uncertainty has placed a cap on crude prices, as traders remain cautious of weaker consumption. The threat of further tariff escalations or a slowdown in global growth could push oil prices lower, limiting substantial upside potential in the near term.
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