Crude oil slipped after a brief rebound, as the market turned to focus on risks of weaker demand and the prospect of oversupply.
The shift comes as the US summer driving season winds down and gasoline demand could moderate, adding near-term pressure on energy markets.
Supply dynamics are also weighing on crude prices. OPEC+ output continues to rise, with further increases expected in September, while non-OPEC producers add to global flows. Traders could monitor OPEC’s next meeting for an update on the organization’s production targets and their impact on supply. A pause could provide the market with some support.
Attention also turns to upcoming US economic data, which could provide some insight into demand levels in the country. Meanwhile, China’s PMI readings will be closely watched for more demand cues. Robust manufacturing activity in China could support oil, suggesting resilient consumption, while softer numbers may exacerbate demand concerns.
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