Recent data from the EIA has revealed that US crude inventories are on the rise, breaking a six-week downward trend. This unexpected increase is expected to put downward pressure on oil prices, but geopolitical tensions in the Middle East and supply issues in Libya could potentially drive prices up.
On the other hand, softening demand from global airlines, especially for jet fuel, is complicating the demand landscape. Goldman Sachs reports a projected decline in global jet fuel demand in the coming months, which could further impact oil prices.
From a technical standpoint, Brent appears ready to climb higher after breaking a descending trendline and retesting it. However, conflicting signals from fundamental factors are keeping market participants on high alert.
Overall, the combination of rising US crude inventories, geopolitical risks, weakening demand from airlines, and technical factors suggest a complex outlook for oil prices. It’s essential for investors to closely monitor these developments to make informed decisions about their finances.