Oil prices showed rebound on Thursday, reversing some of their previous losses. This came after Saudi Aramco announced a sharp increase in oil prices for March deliveries. The market reacted quickly, with Brent crude and U.S. West Texas Intermediate (WTI) both rising slightly in early Asian trading.
Saudi Aramco, the world’s largest oil exporter, made a significant move by raising its oil prices for Asia. This decision was driven by strong demand from China and India, as U.S. sanctions continue to impact Russian oil supply.
Additionally, Aramco raised prices for all other regions. Analysts suggest that the latest sanctions on Russia are tightening global supply, allowing Saudi Arabia to capitalize on the situation. Market expert Tony Sycamore highlighted that these developments indicate a shifting dynamic in the oil market.
Recently, the U.S. implemented strict sanctions targeting Russia's "shadow vessels" used to bypass trade restrictions. This action further disrupted the global oil supply chain. As a result, traders are adjusting their strategies, leading to some price recovery after the overnight sell-off.
Despite a more than 2% drop on Wednesday, oil prices found support around the $70–$68 range. Analysts believe traders are covering short positions, contributing to the slight rebound.
The recent oil price volatility also stems from concerns over U.S.-China trade tensions. New tariffs, including duties on energy products, have created uncertainty. While some believe these measures could push oil prices higher, the overall effect might be negative. Economic slowdowns caused by trade disputes could weaken global demand.
China responded to U.S. tariffs by imposing duties on American oil, liquefied natural gas (LNG), and coal. However, since China’s energy imports from the U.S. remain relatively low, the direct impact may be limited. Still, market participants are closely watching for further developments.
As traders assess the impact of Saudi Arabia’s price increase, the oil market remains sensitive to supply and demand shifts. The interplay between U.S. sanctions on Russia, OPEC+ strategies, and global economic factors will continue to influence price movements.
Stay updated with the latest Forex and oil market trends—explore our insights here: Fixio Markets.
Oil prices rebound after Saudi Arabia raises oil prices for March. Find out how U.S. sanctions and global demand impact the market.
Superior trade execution & trading conditions with the NDD method.
The online FX industry provides a platform for investors worldwide to engage in the buying and selling.
Subscribe to our daily newsletter and get the best forex trading information and markets status updates
Trade within minutes!
日本語
English
Comment (0)