Geopolitical Tensions Fail to Lift Oil Prices

Crude oil prices experienced volatility as geopolitical tensions rose, with Venezuelans voting on annexation and the Houthis firing missiles at commercial ships. However, the recent OPEC+ production cuts failed to impress traders, leading to a focus on demand pessimism. The voluntary nature of the cuts raised concerns about future OPEC+ actions. The end of the Hamas-Israel ceasefire provided a brief upside potential, but the absence of a major escalation event diminished the war premium. Oil prices fell, reflecting a supply-driven market resembling pre-pandemic times.