Oil Market Retreats: Key Implications for Investors and Business Owners Amid Supply Concerns
Oil prices declined by 1.2% on Monday before stabilizing on Tuesday as markets await a crucial meeting scheduled for Friday between US and Russian leaders. This high-profile discussion could result in a partial easing of US sanctions on Russia, a key OPEC+ member, potentially increasing oil supply.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that crude prices have been under pressure this year due to OPEC+ accelerating production despite ongoing concerns about oversupply. The US Department of Energy raised its forecast for the global oil surplus in 2025 to 1.7 million barrels per day, while OPEC remains optimistic, predicting a tighter market ahead. The International Energy Agency is expected to release its updated projections on Wednesday.
US industry data showed a slight rise in nationwide oil stockpiles last week, with official government figures pending release later today. During Asian trading hours, Brent crude futures experienced subdued volumes, and price volatility remained near a two-week low.
Technically, Brent crude is trading at $65.70, facing resistance at $67.30 (50-day simple moving average) and support at $63.70. The US benchmark West Texas Intermediate (WTI) is trading below its 9-day simple moving average, suggesting a bearish trend. Key support levels for WTI stand at $62.10, with a potential drop opening the path to the $60–$59 range. Resistance is observed at $63.60, with further gains possibly reaching $64.30 and $65.10.
The interplay of strong supply forecasts, geopolitical factors, and technical resistance is expected to keep crude oil prices under pressure in the near term.
تحليل خاص من عمانت | تصفح سوق عُمان
The recent decline in oil prices amid rising supply forecasts and potential easing of US sanctions on Russia signals heightened volatility and price pressure for Omani oil exporters. For businesses and investors, this environment presents both a risk of reduced revenue from lower prices and an opportunity to diversify investments and optimize cost structures ahead of possible market fluctuations. Smart entrepreneurs should closely monitor geopolitical developments and supply-demand trends to strategically position themselves for both short-term challenges and long-term market shifts.
Arabic 
English 
Persian