TDS Bank expects the continued decline in oil prices and explains the reason.

Daniel Galli, the chief commodities strategist at TDS Bank, stated in a research note released today, Monday, that the easing of Middle Eastern risks has significantly contributed to the reduction of crude oil prices; traders have concluded that the conflict in the Middle East is over, and therefore, there is no longer a threat to global oil supplies from this perspective.

In this context, without a resurgence of geopolitical risks associated with global crude oil supplies, it is likely that crude prices will decline in the coming period.

However, the conflict in the Middle East has settled into an incredibly unstable equilibrium, as elected President Donald Trump threatens to tighten the enforcement of sanctions on Iran similar to the "maximum pressure" regime that threatened oil flows during his previous term.

The economist further explained that the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC Plus) to postpone plans to increase crude oil production for another month provided only a temporary boost to oil prices.