Oil edges higher, but bearish sentiment persists

– Fueled by trade tensions and oversupply concerns

Lagos — Crude oil futures edged higher, but the trend remains mostly bearish. The uptick followed a volatile session, as traders reacted to U.S. sanctions on Iranian crude exports to China.

While these sanctions may provide short-term support by limiting Iranian oil availability, broader concerns about global supply and demand dynamics persist.

Ongoing trade tensions between the U.S. and China have raised fears of a global economic slowdown, potentially weakening oil demand. As such, despite occasional upside price movements, the overall outlook remains cautious, with economic risks and trade uncertainties limiting significant oil price recovery.

Additionally, U.S. President Trump’s efforts to increase America’s oil production have heightened oversupply concerns, with rising crude inventories further pressuring prices. Refinery maintenance has also reduced demand, contributing to the challenges.

Unless significant geopolitical events or coordinated production cuts materialize, crude prices are likely to face continued pressure from trade uncertainties and rising production levels, limiting the potential for a sustained rebound.

*Hamza Zraimek, CEO IGOUDAR For investment research and studies, PhD Researcher in economics