During the Asian trading session on Monday, international oil prices rose slightly by about 1%, mainly due to the continued crackdown on Houthi militants by the US military.

Brent crude oil futures rose $0.72 (1.02%) to $71.30 per barrel, while WTI crude oil futures rose $0.72 (1.1%) to $67.90 per barrel.

US Defense Secretary Pete Hegseth said on Sunday that the US military will continue to strike Houthi militants until they stop attacking international shipping. Previously, the United States launched airstrikes in Yemen, resulting in casualties among Houthi militants. Houthi officials hinted at the possibility of stronger retaliatory actions, intensifying market concerns about further escalation of the situation in the Red Sea.

Goldman Sachs lowers oil price expectations: trade concerns weaken demand

Despite geopolitical tensions pushing up oil prices, market concerns about global economic growth have limited the gains. Goldman Sachs analysts have lowered their oil price expectations, mainly based on the following points:

The Trump administration's imposition of new tariffs on Mexico and Canada may suppress global trade activities and lead to lower than previously expected economic growth in the United States.

The slowdown in economic growth will drag down the growth of oil demand, and Goldman Sachs expects that the growth of oil demand in the coming months will be lower than the market's previous estimates.

OPEC+supply may exceed expectations, despite current market attention on the situation in the Middle East, overall supply remains relatively abundant.

The market expects that signs of a slowdown in the US economy may put long-term pressure on oil prices, although short-term geopolitical factors may still provide support.

Consumer confidence in the United States has plummeted, and the Federal Reserve may keep interest rates unchanged

The latest data shows that the US consumer confidence index fell to a nearly two-and-a-half-year low in March, while inflation expectations have significantly increased. Market analysis suggests that the Trump administration's comprehensive tariff policy may push up prices while weakening economic growth prospects, further increasing market uncertainty.

In addition, the market is paying attention to the Federal Reserve's interest rate meeting on March 18-19. Analysts generally expect the Federal Reserve to keep interest rates unchanged to continue evaluating the impact of the Trump administration's policies on the economy. If the economic outlook further deteriorates, it is not ruled out that the Federal Reserve may adjust its policies within the year.

On a technical level, the daily moving average of US crude oil is still within the bearish range and is experiencing a short-term rebound after oversold, without a reversal structure. Therefore, it is not ruled out that there may be a second downward trend after oil price testing pressure. It is important to pay attention to whether the previous low point has fallen below, in order to open up downward space.

Market outlook:

In the short term, the tension in the Red Sea region caused by Houthi armed attacks may continue to support oil prices, and the market needs to pay attention to whether the situation further escalates.

In the long run, the global economic slowdown, intensified trade concerns, and increased OPEC+supply may put downward pressure on oil prices

Closely monitor the policy trends of the Federal Reserve, US economic data, and OPEC+'s future production decisions to determine further trends in oil prices.