Oil prices drift lower but remain stuck in narrow range as market struggles to find catalysts

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U.S. crude oil and global benchmark Brent have traded in a $3 range this month since selling off from April highs.

Crude oil futures fell more than 1% on Tuesday in the absence of major market catalysts to support prices.

U.S. crude oil and global benchmark Brent have traded in a $3 range this month since selling off from April highs after traders rolled back geopolitical risk premium as fears of a wider Middle East war eased.Investors are now focusing more on fundamentals but the lack of near-term catalysts will likely keep prices rangebound for the time being, Helima Croft, head of commodity strategy at RBC Capital Markets, told clients in a Tuesday note.

John Evans, analyst at oil broker PVM, said the market will increasingly focus on how OPEC+ may react to the current oil price action as the meeting draws closer. The current softness in the market likely does not support bringing OPEC supply back on the market, Evans said.Goldman says buy call options in these stocks set to benefit from an AI-driven energy demand surgeGoldman is bullish long term on nuclear power and uranium.

 

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