By Daniel Takieddine, Co-founder and CEO, Sky Links Capital Group
Oil prices advanced for a sixth consecutive session, extending their rebound as improving macro signals and geopolitical risks lent support. Traders reacted to stronger U.S. growth indicators, with recent GDP data pointing to the fastest expansion in two years and reinforcing expectations of firmer near-term demand.
Geopolitical developments also underpinned prices. Washington continued to tighten its stance on Venezuelan oil, with stepped-up interdictions and tougher enforcement increasing the risk of temporary export disruptions. Meanwhile, renewed disruption risks to energy infrastructure in Eastern Europe added to the market’s risk premium.
However, upside momentum remains constrained. API data showed a 2.4 million barrel build in U.S. crude inventories, reviving some concerns. More broadly, the IEA projects demand growth of around 0.86 mb/d against supply growth of nearly 2.4 mb/d in 2026, pointing to a sizeable potential surplus that could cap further gains and fuel the current downtrend.