By John Ikani
Oil prices held relatively steady on Thursday, following two days of price swings.
Brent crude and West Texas Intermediate (WTI) experienced only minor changes, marking a period of consolidation after a significant rally on Wednesday.
The recent price surge was primarily driven by a larger-than-expected decline in U.S. crude inventories, signaling stronger-than-anticipated demand.
This positive development offset concerns about weakening global economic conditions and the potential impact on oil consumption.
However, geopolitical tensions in the Middle East continued to underpin market sentiment.
The killing of senior members of Hamas and Hezbollah raised fears of potential retaliatory attacks by Iran, which could disrupt oil supplies from the region.
In addition, a force majeure declaration at Libya’s Sharara oilfield tightened supply conditions.
While these factors supported price increases, ongoing concerns about a potential U.S. recession and weakening global demand acted as a counterbalance.
As a result, oil prices remained in a relatively narrow trading range.
Looking ahead, the oil market is expected to remain volatile as geopolitical risks and economic uncertainties persist.
Traders will continue to monitor developments in the Middle East, the trajectory of the global economy, and inventory levels for clues about future price direction.
