Oil prices have entered a phase of mild correction this week, as markets digest signals from both supply-side and macroeconomic developments. Brent crude is currently trading around $84 per barrel, down from recent highs, while WTI sits near $79.

The key driver behind the softening is the indication from OPEC+ that additional supply may be introduced into the market in the coming months. This is part of a strategic move to maintain balance in light of softer-than-expected demand from major economies such as China and Europe.

Moreover, investor sentiment has cooled, with net speculative long positions decreasing. The recent withdrawal of capital from oil-focused exchange-traded funds (ETFs) suggests that short-term traders are adopting a wait-and-see approach amid growing economic uncertainty.

However, this bearish pressure is being tempered by persistent geopolitical risk. Tensions in the Middle East—particularly in the Strait of Hormuz—continue to act as a price floor. Any escalation could rapidly reintroduce supply fears, reminding the market of oil’s sensitivity to regional instability.

From a macroeconomic perspective, interest rate speculation is also influencing oil futures. The U.S. Federal Reserve’s stance on maintaining higher rates for longer could suppress industrial activity, thereby dampening energy consumption in the short term.

Key Takeaway for Clients:
While prices are momentarily easing, underlying fundamentals—especially OPEC strategy and geopolitical tensions—suggest that the market remains vulnerable to sharp moves. Buyers should remain cautious but alert to opportunities created by short-term dips.



Natural gas markets are demonstrating relative calm, with Henry Hub prices hovering around $3.15 per MMBtu. After a volatile winter season driven by weather anomalies and storage concerns, the market is now adjusting to more predictable spring conditions.

In the U.S., production has remained strong thanks to resilient shale operations, particularly in the Permian and Appalachia basins. Storage levels are now within seasonal norms, easing pressure on prices.

In Europe, the picture is one of quiet confidence. Inventories remain well stocked, and LNG deliveries from the U.S. and Qatar continue at a healthy pace. Mild temperatures across the continent have also led to reduced heating demand, further stabilising prices.

Asian markets, led by Japan and South Korea, are still actively purchasing LNG, but at lower volumes compared to the winter peak. China’s return to growth is a bullish long-term factor, but current demand is described as steady rather than surging.

Key Takeaway for Clients:
For buyers, this period of price stability in gas markets offers a window for forward contracting or re-evaluating procurement strategies ahead of the summer cooling season and Q4 hedging cycles.