Since the start of the year, crude oil prices have enjoyed an almost 30 percent increase but have still not recovered from the 40 percent drop in Q4 2018. Increasing concerns about weakening global growth – especially out of powerhouse economies such as China and the US – may undercut the sentiment-linked commodity’s upside momentum if underlying demand for it is eroded.
However, crude oil prices may receive a boon from politically-based factors. The most recent OPEC+ meeting that was supposed to take place in April was cancelled, with investors now waiting for the June session. Officials are expected to be in support of deep cuts. The US is also reimposing sanctions against Iran, which may undercut supply and boost prices.
---Written by Tyler Yell, CMT and Dimitri Zabelin, Analysts for DailyFX.com