By Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade
Crude oil futures opened lower this week, extending the current negative trend in the market. Prices could remain exposed to the downside as traders remain in a wait-and-see mode following the US-Russia talks in Alaska, where President Trump and President Putin hinted at an alignment on pursuing a peace deal in Ukraine, limiting the concerns over new sanctions.
Trump’s upcoming meetings with Ukrainian and European leaders aim to accelerate negotiations and could impact oil supply levels on the market. Successful diplomatic progress could increase Russian crude availability, weighing on prices. Conversely, setbacks may tighten supply and provide support to global crude markets.
At the same time, traders could continue to monitor developments on the demand side. Economic indicators showed a slowdown in China, which could affect demand for oil and add to the downside risks. In the US, traders could focus on crude oil inventory data releases for signs of demand strength. Continued increases in stockpiles could add to the concerns and weigh on prices.