Oil futures dipped slightly as geopolitical risks stabilized. Meanwhile, weak demand from China continues to exert pressure on the oil market.
US Secretary of State Antony Blinken’s efforts to facilitate a ceasefire in Gaza and address tensions in Lebanon may help ease concerns about disruptions, potentially pushing oil prices lower.
China’s economic challenges, including slower growth, have raised concerns about the future oil demand. The International Energy Agency projects that China’s oil demand growth will remain weak through 2025 despite some optimism from Saudi Aramco following the Chinese government’s measures to revive the economy.
Additionally, a stronger dollar could also pose downside risks to oil prices.
These developments may lead to a bearish sentiment in the global crude market, exacerbating the decline in oil prices. Traders will likely focus on upcoming economic data releases and U.S. crude inventory levels to gauge the global oil demand.
