The prospect of loose coins offsets geopolitical risks Oil prices continue to Fluctuation

Fluctuation in oil prices as the prospect of loose monetary policy offset a decline in geopolitical risk premiums. Today’s weak economic data was interpreted as market bullish as traders analysed clues on the Fed’s next move in the fight against inflation and the outlook for drop Intrerest Rate. At the same time, a range of crude oil market indicators show that traders are underestimating the risk of further escalation in the Middle East. Options skew for the second month of West Texas Intermediate crude oil has fallen back to the usual put options skew as traders now seek to guard against price falls. On Tuesday, U.S. crude oil prices broke above the 50-day moving average for the first time since February, a move that could lead to a more long sell-off. The U.S. summer tourist season typically brings a surge in fuel demand, and after a flurry of fluctuation, oil prices have yet to reach their year-to-date highs. This has led Xu long analysts to expect further pump in oil prices later this year, even after the recent pullback. Traders are also turning their attention to the next production meeting of the OPEC+ alliance, where the group’s recent production cuts have led to tighter supply in the market.