Reported 3 days ago
Oil traders are reacting to Donald Trump's foreign policy as bearish for crude oil prices, which has led to the evaporation of the geopolitical risk premium that previously elevated oil futures. This sentiment emerged after the Russia-Ukraine conflict, with expectations that Trump's administration will limit oil demand, particularly from Iran. Despite potential conflicts in the Middle East, traders seem to anticipate a stable oil market due to record US shale production and OPEC+ spare capacity. Consequently, traders have grown cautious, leading to stagnation in oil prices and reducing the outlook for future price increases.
Source: YAHOO