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Crude oil forecast: WTI extends rally amid US-Iran tensions

Crude oil prices rose more than 3% by mid-day in London, causing stocks and bonds to drop. Prices have rallied after Trump said Iran had been given an opportunity to reach a deal but had failed to take it. But now Trump said an unprecedented economic operation against Iran will be underway, warning of severe economic consequences for countries providing support to Tehran.

Crude oil outlook: WTI climbs amid Strait of Hormuz hostilities

Crude oil prices rose more than 2.5% on Tuesday, extending their recent recovery. Reports that commercial vessels transiting the Strait of Hormuz had come under attack, reminded markets that geopolitical risks in the Middle East remain far from being resolved completely. Markets are also wary of a still tight market and the expected buying of oil to fill up emergency stocks.

Crude oil forecast: WTI relinquishes entire weekly gain

And just like that, oil prices gave up the entire near-6% weekly gains by afternoon trading in London. Crude oil traders had been pricing in disruptions to Iranian oil in recent days amid concerns about military action in the country by the US. But it looks like Trump has decided against that - at least for now - and traders have accordingly reduced the risk premium priced in oil.

Crude oil outlook: WTI remains delicately balanced

Oil prices remain on the backfoot. After initially spiking higher, crude oil turned and closed lower on Monday, as traders reacted to threats of 'very severe' tariffs against Russia. WTI was still holding above the $65 barrel, so it wasn’t all doom and gloom. Still, the crude oil outlook is far from bullish, but we continue to expect more side-ways chop in the coming weeks.