Crude oil steady as geopolitical worries re-emerge – London Business News | London Wallet

Crude oil futures have stabilized to a certain extent after last week’s sharp declines, as concerns over weakening demand in China weighed on market sentiment.

China’s economic slowdown, now at its weakest growth rate since early 2023, continues to dampen expectations for a quick recovery in oil demand, despite ongoing Beijing’s stimulus efforts.

This has kept prices under pressure as investors monitor whether China can boost its demand.

At the same time, changing geopolitical conditions continue to affect the market. Despite U.S. President Biden hinting at a potential de-escalation, briefly relieving pressure on prices, tensions remain elevated, keeping geopolitical risks in focus and raising the chance of renewed market volatility.

On the supply side, reduced U.S. oil and gas rig activity could provide support for prices if the trend continues. Meanwhile, Saudi Aramco’s CEO has expressed optimism about China’s oil demand, which is driven by government stimulus and increased needs for jet fuel and petrochemicals. Stronger demand could boost prices.