New Delhi, July 5
Crude oil prices may see a recovery in the near term as positive signals emerge from the supply side and geopolitical tensions show signs of easing, experts said on Saturday.
While demand concerns continue to weigh on global sentiment, market experts believe crude prices could bounce back if key technical levels are sustained.
West Texas Intermediate (WTI) crude prices remained subdued on Friday, trading near the mid $65 range amid thin holiday trading and weak global demand.
However, analysts are pointing to a potential turnaround, especially with key events like the OPEC+ meeting and the US tariff deadline on the horizon.
Tejas Shigrekar, Chief Technical Research Analyst -- Commodities and Currencies at Angel One Ltd, said the crude oil outlook remains mixed, but there are reasons for cautious optimism.
He noted that while demand has been hit due to slowdowns in global manufacturing --particularly in China and the Eurozone -- OPEC+ production cuts are still keeping global supply tight.
“These cuts, mainly led by Saudi Arabia and Russia, have helped prevent a deeper fall in prices,” he explained.
“Even with softer demand projections from OECD countries, the coordinated output curbs are providing a floor to prices,” Shigrekar said.