Oil prices saw a sharp plunge to $56 at the height of the market’s tariff panic. A recovery to $63 has the September low of $65.25 as resistance for further gains.
Oil prices were higher on Friday but still under pressure as a potential OPEC+ output increase and a possible ceasefire in the Russia-Ukraine war raised supply expectations. The United States and Russia are moving toward an end to the war in Ukraine, but parts of a peace deal remain to be agreed, Russian Foreign Minister Sergey Lavrov said.
A halt to Russia’s war in Ukraine could see sanctions eased and a return of oil to global markets. Russia is a member of the OPEC+ group and a ceasefire could see the group abandon production hikes in order to further boost prices.
Iranian Foreign Minister Abbas Araqchi said he was ready to travel to Europe for talks on its nuclear program and that could also see sanctions reduced on Iran. The demand outlook is still an issue with weak economic growth and recent tariffs adding stress.
Businesses are increasing prices and cutting financial guidance due to higher costs from the trade war, which has also upset global supply chains. In the UK, the top energy firms reporting their earnings this week are expected to show losses of $4 billion from the tariff turmoil. BP will release its earnings on Tuesday, while Shell announces profits on Friday.
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