Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade
27th January 2025
Crude oil futures faced continued pressure as U.S. President Trump renewed calls for OPEC to lower prices. The Trump administration’s efforts to expand U.S. oil and gas output have added to the downward momentum, potentially increasing competition for global market share. In this regard, any changes in OPEC+’s production plans could affect the market as traders react to shifting supply expectations. At the same time, positive geopolitical developments in the Middle East could also weigh on the market as traders price in reduced risks.
Meanwhile, the U.S. avoided imposing sanctions on Colombia after the country agreed to accept deported migrants, ensuring continued oil exports to the U.S. and preventing potential disruptions. Colombia, which sent 41% of its seaborne crude exports to the U.S. last year, remains a critical supplier. However, the broader market could maintain focus on potential sanctions on Russia. As a result, traders could remain cautious due to changing geopolitical conditions, as a flare-up could provide some support to crude oil markets although a significant market rebound could be unlikely in the near term.