Trump Goes "The Peacemaker", as Crude Oil Turns Gradually Lower

3月6日

The notion that crude oil prices might decrease due to an abatement of the Ukraine's war not seems to be counterintuitive, as the conflict has historically led to increased oil prices due to supply disruptions and geopolitical tensions.
There are several factors that could contribute to a decrease in oil prices if tensions were to ease.

Factors Contributing to Decreased Oil Prices:

1. Easing of Sanctions on Russia: If tensions between the U.S. and Ukraine were to ease, it might lead to a relaxation of sanctions on Russia, potentially allowing more Russian oil to enter the global market. This increase in supply could help reduce prices.
   
   
2. Market Perception of Reduced Conflict: The market might perceive a decrease in conflict as a sign of reduced risk to global oil supplies, leading to lower prices. This perception could be influenced by expectations of increased oil availability from Russia and other regions.
   
   
3. OPEC Production Increases: If OPEC decides to increase production, as it has recently done, this could add more oil to the market, further pressuring prices downward.
   
   
4. Global Economic Concerns: Economic slowdowns or concerns about global growth can reduce demand for oil, leading to lower prices. The Ukraine conflict has contributed to economic uncertainty, and its abatement might not necessarily increase demand if global economic concerns persist.
   

Fundamental considerations

1. Well, in early March 2025, oil prices fell due to a combination of factors, including tensions between the U.S. and Ukraine and OPEC's decision to gradually increase output. Brent crude fell to around $71.08 per barrel, and WTI to about $68.01 per barrel.
   
   
2. Impact of Sanctions: Despite sanctions not directly targeting Russian oil, they have affected its exports by limiting financing and causing some buyers to avoid Russian crude. Easing these sanctions could increase Russian oil exports, potentially lowering global prices.
   
   
3. Market Dynamics: The war in Ukraine initially caused oil prices to surge due to supply concerns. However, if the conflict were to abate, market dynamics could shift, leading to decreased prices as supply risks diminish and global economic factors come into play.
   

Post war challenge

1. Crude oil and gasoline prices today are moderately lower, but crude oil tends to breakthrough a long-term 3 - to - 4 years low.
   
2. Crude oil prices are under pressure as US tariff uncertainty weighs on the outlook for energy demand.
   
3. Also, ramped-up Russian oil exports boost global supplies and are negative for prices.
   
4. In addition, crude prices have some negative carryover from Wednesday when weekly EIA crude inventories rose more than expected to a 7-month high.
   

Conclusion

In summary, while the Ukrainian war has historically driven oil prices up due to supply disruptions and geopolitical tensions, an easing of tensions could lead to decreased prices through increased supply, reduced market risk, and global economic factors.

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Best 'Peacemaking' wishes,
PandorraResearch Team 😎

4月7日

交易進行

April 7, 2025

👉 Were you ready or not.. Crude oil futures has turned below $60 per barrel - the lowest mark over past several years, due to all-the-markets disinflationary stress and massive sell-off.

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Best 'Peacemaking' wishes,
PandorraResearch Team 😎