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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/crude-oil-volatility-deepens-amid-trade-spats-supply-squeeze-fears/
Crude oil futures swung wildly this week, caught between fears of weakening demand and geopolitical supply shocks, as traders grappled with conflicting signals from global markets.
Prices seesawed after China slapped retaliatory tariffs on U.S. energy imports—a direct response to escalating trade tensions—only to rebound briefly when the White House vowed to intensify pressure on Iran, a move that could slash up to 1.5 million barrels per day from global crude exports.
The rally faltered, however, as U.S. government data revealed a larger-than-expected buildup in domestic crude inventories, stoking concerns about softening demand in the world’s top oil consumer. Analysts warn that swelling stockpiles, paired with unresolved trade disputes, could prolong the market’s bearish tilt. “The inventory numbers are a reality check,” noted energy strategist Liam Hart of Barlow Commodities. “Trade wars don’t just disrupt flows—they erode confidence in growth, and that’s toxic for oil.”
While U.S. sanctions on Iran offer temporary price support, broader headwinds persist. OPEC’s looming production hikes and surging U.S. shale output threaten to offset supply shortages, creating a precarious balance for traders. Market participants now face a tug-of-war: short-term supply risks from Iran’s squeezed exports clash with longer-term anxieties over slowing industrial activity and a potential glut.
“The market’s pricing in chaos theory,” Hart added. “Every headline moves the needle, but nobody’s sure which crisis will tip the scales first.” With Brent crude hovering near $75 a barrel, analysts suggest volatility will dominate until trade tensions ease or concrete supply disruptions emerge—neither of which appears imminent.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/crude-oil-volatility-deepens-amid-trade-spats-supply-squeeze-fears/
