Crude oil futures experienced volatility in reaction to a mix of economic concerns and rising geopolitical tensions.
Weak US economic data, including poor job growth, have raised concerns about a possible recession in the US. Concerns about demand from China could also continue to weigh on the market.
Despite these economic fears, oil prices might find support on the back of tensions in the Middle East. At the same time, US crude oil inventories dropped significantly, showing strong demand. The EIA reported a decrease in inventories.
Traders could continue to monitor the economic developments in the US and China and their impact on oil demand. Monetary policy direction in the US could remain a strong market-driving factor as expectations change significantly. The market could turn its attention to new interventions from central bankers.
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