Crude oil futures attempted to rebound after yesterdayโs losses but remained on a downtrend overall.
Weak demand indicators and global economic uncertainties could continue to weigh on prices. Softer-than-expected Chinese manufacturing data in January heightened concerns over the demand outlook for the worldโs largest crude importer, while warmer weather forecasts in the U.S. and Europe have reduced heating fuel consumption.
Together, these factors have pressured crude prices as market participants remain cautious about near-term demand recovery.
Chinaโs crude oil demand faces additional challenges from U.S. sanctions targeting Russian oil, which have disrupted supply chains for refineries in Shandong. Many refineries have either halted operations or scaled back amid higher costs and unfavorable domestic tariff policies. At the same time, the broader uncertainty surrounding Chinaโs demand outlook limits any significant upside momentum.
In the U.S., warmer-than-expected weather is reducing heating fuel demand, following a recent rally driven by colder conditions. This seasonal shift could place further downward pressure on crude prices, reflecting reduced consumption in a key energy market. Concerns over upcoming U.S. trade restrictions and slower global growth also dampen sentiment.
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