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At 12:34, Light Crude Oil Futures are $69.85, up $0.09 or $0.13%.
Geopolitical Uncertainty Keeps Oil Markets Cautious
Oil markets remain on edge as geopolitical tensions continue to shape sentiment. Investors are closely monitoring developments in the Russia-Ukraine conflict, particularly after Ukrainian President Volodymyr Zelenskiy indicated a potential opportunity to restore relations with the U.S. However, recent diplomatic tensions following a heated Oval Office exchange with President Donald Trump have raised concerns over future U.S. support.
Analysts at RBC Capital warn that the rift between Washington and Kyiv could accelerate a reassessment of U.S. sanctions on Russia. Meanwhile, European leaders reaffirmed their commitment to Ukraine, promising increased financial aid. The Kremlin, however, dismissed these efforts, stating they would not bring a resolution to the conflict.
Tariff Uncertainty Weighs on Demand Outlook
Oil traders are also digesting the impact of new U.S. tariffs set to take effect on Tuesday. Commerce Secretary Howard Lutnick confirmed that levies on Canadian and Mexican imports will proceed as planned, though the final rate remains at the discretion of President Trump.
Analysts at PVM caution that while tariffs can slow economic growth and oil demand, they may also curb supply if imposed on key crude-producing nations such as Canada and Mexico. This dual effect is creating uncertainty in the market, preventing a clear directional move in oil prices.
China’s Manufacturing Data Lends Support
Providing some relief to oil bulls, data from China showed manufacturing activity expanded at its fastest pace in three months. The report suggests a possible rebound in industrial demand, offering support to oil prices after both Brent and WTI posted their first monthly declines in three months.
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