Oil Market Dynamics and Economic Insights

Crude oil prices are rising due to U.S. sanctions on Russian oil, which are anticipated to disrupt global supply chains. The sanctions could push major buyers, such as China and India, to seek alternative supplies, potentially erasing the expected surplus in the oil market this year, according to analysts. Additionally, recent economic data suggests a strong U.S. economy, with rising restaurant reservations and solid job numbers indicating expansion. The evolving economic landscape raises the likelihood of potential Federal Reserve interest rate hikes, with a 40% chance projected for 2025 despite current market expectations indicating otherwise.