Oil prices continue to fluctuate as traders assess supply and demand dynamics.
While the market has rebounded in recent trading sessions, prices have been on a downtrend for several weeks and may face ongoing pressure.
On the supply side, disruptions could provide short-term relief from the recent decline in oil prices.
U.S. production capacity remains a concern, as Hurricane Francine significantly impacted oil and gas production in the U.S. Gulf of Mexico. Additionally, efforts to limit the availability of sanctioned oil on the market could tighten global supplies, potentially bolstering oil prices.
However, sluggish demand could overshadow these supply concerns as the market remains cautious amid persistent weakness in China, one of the world’s top oil importers, which could continue to cloud oil’s outlook. Crude oil prices might experience higher volatility due to the upcoming U.S. retail sales report. Furthermore, with markets uncertain about the extent of the Fed’s rate cut decision on Wednesday, oil prices could see further fluctuations.
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