Market comments on behalf of Wael Makarem Financial Markets Strategists Lead at Exness

(MENAFN- Your Mind Media ) Oil prices stabilized to a certain extent after two sessions in the red. The American Petroleum Institute (API) reported a massive draw in crude oil inventories of 4.8 million barrels, significantly larger than the forecast of a 1.7 million barrel draw, helping to limit the downside after recent selling.

At the same time, markets could remain attentive to the peace efforts in Eastern Europe. Progress toward a deal could fuel expectations of more Russian oil columes returning to the market, reinforcing the risks of a decline in prices. However, due to the lack of tangible progress until now and renewed disruptions to the energy infrastructure in the region, the market could continue to see some volatility and potential rebounds.

However, the medium to long-term bearish outlook could continue to cap every bounce. Projections continue to point to a sizable crude supply surplus building into 2026 on robust non-OPEC+ output. In the meantime, traders could react to the EIA crude inventory data later today, which could complement the API data.

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