Trump Targets the Fed

Oil prices began recovering gradually after a steep fall on Monday,
triggered by former U.S. President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell.
Trump warned that unless interest rates are lowered promptly,
the U.S. economy may slow down—his latest in a series of attacks on the central bank.

His statements sent ripples through global markets,
prompting investors to pull out of riskier assets like equities, bonds, and the dollar, leading to heightened volatility in oil prices.
On Monday, Brent crude dropped by 2.5%, marking its steepest single-day loss in over a week.

Despite that, Brent rebounded to trade near $67 a barrel, while West Texas Intermediate (WTI) remained below $64,
as markets attempted to stabilize after the shock

Trade Disputes

Beyond political tension, renewed trade frictions between the U.S. and major partners have cast doubt over global demand prospects.
At the same time, the resumption of output from some OPEC+ countries this month has fueled concerns about a possible supply glut.

This oversupply narrative is reflected in the recent shift in Brent futures,
which slid into a contango pattern—an indicator of downward price pressure caused by excessive supply.

Taken together, these factors paint a picture of a fragile oil market,
highly sensitive to geopolitical dynamics and monetary policy signals from the U.S. Federal Reserve.

Oil Recovers After Sudden Drop: Brent Nears $67

Oil Recovers After Sudden Drop: Brent Nears $67

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