Brent crude oil futures climbed above $72 per barrel on Wednesday, rebounding from a two-week low. This uptick was fueled by temporary supply tightness in the physical market.
Brent climbs above $72 on Wednesday
While investors digested OPEC's latest downward revisions to 2024 and 2025 demand growth forecasts, primarily due to China's economic slowdown, concerns remain. Despite OPEC's estimates being higher than other agencies, the declining demand outlook and China's weakness continue to dampen market sentiment.
Political tensions hit crude prices
Beijing's recent debt relief package for local governments failed to alleviate these concerns, which were further exacerbated by the potential for increased US tariffs under the incoming Trump administration. Moreover, the market is grappling with the prospect of a surplus by 2025, driven by slowing demand and OPEC's planned output expansion.
