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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/oil-prices-tread-water-as-trade-winds-shift-supply-glut-looms/
Crude oil futures flickered with tentative stability Thursday, clawing back marginal gains after a four-day selloff fueled by demand jitters and swelling U.S. inventories.
Prices found fleeting relief as the Biden administration granted automakers a temporary reprieve from steel tariffs and floated plans to scrap a 10% levy on Canadian energy imports—moves seen as easing trade friction that has rattled global supply chains.
Yet the bounce remains fragile. Brent crude hovered near $83 a barrel, while WTI traded just above $78, as markets grappled with conflicting signals. Analysts warned the uptick could stall amid lingering uncertainty over U.S. tariffs on Canadian and Mexican goods, including energy, which threaten to disrupt North American trade flows. “These tariffs are a double-edged sword,” said a Houston-based trader. “They might protect domestic producers short-term, but they’re inflaming fears of a broader demand collapse if retaliatory measures kick in.”
Bearish pressures mounted as U.S. crude stockpiles surged by 3.7 million barrels last week—1 million more than forecast—underscoring tepid consumption even during peak summer driving season. The glut coincides with OPEC+’s decision to phase out voluntary output cuts starting October, a move that could flood markets with an additional 500,000 barrels daily by 2025.
While tariff tweaks may offer a temporary lifeline, structural headwinds persist. Global oil demand growth is cooling, with the International Energy Agency trimming its 2024 forecast to 960,000 barrels per day, down from 1 million. Meanwhile, non-OPEC supply, led by U.S. shale and Guyana’s booming offshore fields, continues to climb. “The math isn’t adding up for bulls,” said a Geneva-based analyst. “We’ve got too much oil chasing too little demand.”
For now, crude remains caught in a tug-of-war between geopolitical optimism and hard supply-demand realities. With OPEC+ taps loosening and refinery margins thinning, traders brace for a volatile summer—one where every tariff tweet and inventory report could tip the scales between relief rally and renewed rout.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/oil-prices-tread-water-as-trade-winds-shift-supply-glut-looms/
