WTI crude oil futures rose to around $69.6 per barrel on Monday, slightly recovering from an over 8% plunge last week.
Oil futures recover after negative week
The sharp decline was driven by concerns over weak demand and the prospects for a global glut after the IEA and OPEC lowered their demand forecasts, largely citing reduced consumption from top importer China. Bearish sentiment was further fueled by China’s refinery output declining for the sixth consecutive month, due to the country’s shift toward electric vehicles.
What impacted on oil
Meanwhile, the PBoC cut key lending rates to record lows as part of stimulus measures following Q3 GDP growth that missed expectations. Investors continued to monitor potential supply risks amid renewed tensions in the Middle East after Hezbollah announced an escalation in its conflict with Israel, while Israeli strikes reportedly hit Beirut’s southern suburbs and other regional targets over the weekend.
