Finance News

Story: WTI Crude Drops Below $68 as Trade War Fears Hit Energy Markets

By Sakamoto Nashi

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WTI crude fell Monday morning. The benchmark oil price opened with a bearish gap and kept sliding from Friday's peak near $68 per barrel as traders worried about escalating trade…

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Trade war concerns pretty much dominated the session, with investors pulling back from last week's optimism about potential US trade deals.

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Geopolitical risks in the Middle East continue weighing on trader psychology, even as prices retreat from recent highs.

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Goldman Sachs bumped up their WTI forecast to $70 per barrel for Q2, citing geopolitical factors. That's up from their previous $65 estimate.

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The Energy Information Administration reported a surprise 3.5 million barrel increase in US crude inventories on February 22. Analysts had expected a small drawdown instead.

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OPEC meets March 5, and producers are watching price volatility closely. The group might adjust production targets if current market conditions persist.

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Wall Street energy stocks reflected the crude price uncertainty. ExxonMobil traded at $110.25 Monday, down from recent highs as investors reassessed earnings forecasts.

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The Federal Reserve meeting March 15 adds another wrinkle for oil traders. Interest rate decisions don't directly impact crude, but they affect dollar strength, which influences…

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Secretary of State is scheduled to speak later this week, and traders will parse any comments about Iran policy.

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The International Energy Agency warned about fragile supply-demand balance in its February 20 report.

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Asian markets are also factoring into oil price calculations. China's economic slowdown could reduce crude imports significantly, given the country's massive energy consumption.

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Energy traders face multiple crosscurrents right now. Trade war fears push prices down while Middle East tensions provide support.

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Market participants expect continued volatility until some of these issues get resolved. There's no clear timeline for trade negotiations or Middle East diplomatic progress.

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Traders are staying cautious and responsive to news flow. With so many moving parts, quick reactions to headlines have become the norm.

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The energy sector continues navigating these challenging crosscurrents without clear direction from policymakers or diplomats.

The Currency Analytics

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