By Daniel Takieddine Co-founder and CEO, Sky Links Capital Group
Oil was trading slightly higher today as traders continue to monitor the impact of the geopolitical tensions in Eastern Europe. Oil prices could continue to see some support as energy infrastructure remains at risk in the region. Tensions could lead to increased disruptions to crude oil exports. At the same time, the lack of progress in peace talks could leave the market on edge. Additionally, expectations of a Federal Reserve rate cut in December could lend some support as the dollar weakens and the economic growth outlook improves to a certain extent.
However, recent figures from the EIA have pointed to rising inventory levels for crude and its derivatives in the US. At the same time, global balance projections from major agencies still suggest that non-OPEC supply growth is set to outpace demand into 2026, keeping the market tilted toward surplus. In that context, oil prices could continue to see downside risks.