Oil Prices Rise on Short-Covering Despite Lingering Economic Concerns

Oil prices climbed on Tuesday, driven by short-covering activity among investors following sharp losses in the previous session. However, persistent fears of a global economic slowdown and ongoing geopolitical tensions continue to cast a shadow over fuel demand forecasts

Oil Market Performance

‍
Brent crude futures rose by 36 cents, or 0.5%, to $66.62 per barrel. U.S. West Texas Intermediate (WTI) crude for May delivery—which expires today—gained 65 cents, or 1%, to reach $63.73 per barrel. The more actively traded WTI contract for June delivery rose by 43 cents, or 0.7%, to $62.84 per barrel

Key Drivers of Price Movement

‍
Oil markets had fallen by over 2% on Monday amid signs of progress in nuclear deal talks between the U.S. and Iran. Political tensions in the U.S., including President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell, have also undermined investor confidence and sparked concerns over the central bank’s independence

Market Outlook

‍
Analysts noted that the rebound was fueled by short-covering after Monday’s sharp sell-off. Still, fears of a potential recession triggered by ongoing tariff wars remain in play. WTI is expected to trade within the $55–$65 range for now, reflecting continued uncertainty surrounding trade policy

In a related development, documents reviewed by Reuters revealed that Russia’s Ministry of Economic Development has lowered its forecast for the average Brent crude price in 2025 by approximately 17% compared to its previous estimate in September

With geopolitical tensions and economic uncertainty persisting, the oil market remains highly volatile. Investors are closely watching developments in U.S.-Iran nuclear negotiations as well as U.S. economic policy shifts and their implications for global energy demand