Light Crude Oil Bullish Bias: Market Sentiment for Retail

As of February 4, 2025, light crude oil prices have been exhibiting an upward trend, influenced by various market dynamics.

Current Market Sentiment:

Supply Constraints: OPEC+ is expected to maintain its current plan of gradually increasing oil production starting in April, despite pressures to reduce prices.
REUTERS.COM

Demand Projections: The International Energy Agency (IEA) forecasts that global oil consumption will rise from 840,000 barrels per day (bpd) in 2024 to 1.1 million bpd in 2025, reaching a total of 103.9 million bpd.
IEA.ORG

Geopolitical Factors: Recent U.S. tariffs on major trading partners, including Canada and Mexico, have introduced market uncertainties. These actions could potentially slow U.S. economic growth and increase inflation, factors that may influence oil prices.
FT.COM

Considerations for Retail Traders:

While the current sentiment leans bullish due to supply constraints and projected demand growth, it's essential to remain cautious. Geopolitical developments and policy changes can rapidly alter market conditions. As a retail trader, it's advisable to monitor these factors closely and employ prudent risk management strategies when considering positions in light crude oil.

Note: This analysis is based on information available as of February 4, 2025. Market conditions are subject to change, and it's important to stay updated with the latest data and news.