At some point this year there could be a strong opportunity to buy crude oil, as prices near USD 55 per barrel are potentially unsustainable.
WTI crude oil futures rose more than 3.5% on Thursday to trade above USD 57.9 per barrel, rebounding from a two-day slide. The move, however, was not enough to recover the losses earlier in the week, and prices remain close to the five-year low set in December.
Uncertainty around Venezuelan exports resurfaced after Washington announced plans to maintain indefinite control over the country’s crude sales.
Meanwhile, in Iran, protests have been reported in Tehran and other cities as inflation rises and the currency weakens, adding another layer of geopolitical risk for oil. Unlike Venezuela, Iran continues to export roughly 2 million barrels per day and produces between 3.2 and 3.5 million barrels per day, contributing a meaningful volume of global supply.
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Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
