Oil prices held steady but are set to end the week lower driven by concerns over weakening demand in U.S. and China.
Recent downward revisions to U.S. employment data have heightened fears of a potential recession, which could reduce oil consumption.
In addition, China’s ongoing economic struggles are dampening demand forecasts from the world’s largest oil importer, adding pressure on the oil market.
On the supply side, increased Russian oil exports through sanctioned vessels and a rise in U.S. shale oil production are expected to weigh further on global oil prices. Russia’s ability to bypass sanctions and the anticipated 4.5% increase in U.S. shale production is likely to ramp up supply.
However, declining global inventories and potential strategic adjustments by OPEC could provide some support for oil prices. While OPEC Is expected to phase out its production cuts, adding to the global supply, a change in policy could drive oil prices to the upside. at The same time, geopolitical risks remain present and could affect the market.
