Crude oil futures are attempting to stabilize following a recent rebound but remain under pressure due to a larger-than-expected rise in U.S. crude inventories.
Rising inventories have led to a bearish outlook for global crude prices in the short term.
However, the uncertainty created by ongoing geopolitical tensions in the Middle East could continue to fuel volatility in the market. The market continues to price in a “war premium” as geopolitical risks weigh heavily on sentiment.
There are also indications that demand may recover, especially if China’s recent stimulus measures succeed in stabilizing its economic conditions, which could provide support to crude prices. However, prices could still see downside pressure if demand remains weak.
Attention now turns to the upcoming EIA U.S. Crude Oil Stocks Report, which is expected to show a modest inventory increase of 700,000 barrels, compared to the previous week’s decline of 2.192 million barrels. If the report confirms this inventory rise, it may limit further upside on crude prices in the short term.
Leave a Comment