By George Pavel
Crude oil futures remain capped as the market adjusts its outlook on weak demand although geopolitical tensions in the Middle East could remain a source of risks. Earlier in the week, prices had dropped following demand forecast cuts by both OPEC and the International Energy Agency. Although fears of an Israeli retaliation against Iran have subsided, lingering uncertainty in the region still weighs on the market.
China’s recent efforts to increase financing for housing projects could revive demand although figures were weaker than expected. In the U.S., crude oil inventories unexpectedly declined, contrary to expectations of a rise, and upcoming data from the Energy Information Administration may introduce further volatility in the oil market.
Looking ahead, whilst Chinese stimulus measures could encourage demand and provide some support to oil prices, signs of continued weak demand remain the main catalyst for current bearish sentiment. Attention now shifts to China’s Q3 GDP report, which is expected to show 4.5% year-on-year growth, slightly below the previous 4.7%. If growth disappoints, crude prices may come under additional pressure.
- Pavel is General M
anager at Capex.com Middle Eas t - Photo credit: https://cpeel.ui.edu.ng/
