"Oil prices are recovering today from a recent plunge to five-month lows on Friday, driven primarily by a shift in market sentiment. This relief rally was fuelled by retreating concerns over a potential escalation of trade tensions between the US and China after the US administration adopted a softer tone over the weekend. At the same time, strong Chinese customs data showed September crude imports rising to approximately 11.5 million barrels per day (b/d), indicating healthy demand and potentially supporting the market."
"However, this upward momentum could continue to face headwinds. The market's narrative could remain dominated by ample supply and a weak global macroeconomic outlook. Projections of record-high US crude production, expected to hit 13.53 million b/d, contribute to concerns of an oversupplied market in addition to OPEC+ output increases. The recent easing of geopolitical tensions in the Middle East weighed on prices as well. Markets could remain attentive to the geopolitical developments in the region."
Oil prices recovered from five-month lows after market sentiment shifted and US administration adopted a softer tone, reducing fears of a US-China trade escalation. Strong Chinese customs data showed September crude imports around 11.5 million barrels per day, signaling healthy demand and supporting prices. Downside risks persist due to ample global supply and a weak macroeconomic outlook. US crude production is projected to reach a record 13.53 million b/d, adding to concerns of oversupply alongside OPEC+ output increases. Easing geopolitical tensions in the Middle East has weighed on prices, and markets remain attentive to further regional developments.
#oil-prices #us-china-trade-tensions #chinese-crude-imports #us-crude-production #middle-east-geopolitics
Read at London Business News | Londonlovesbusiness.com
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