Crude oil futures have continued their downward trend, as recent developments in the Middle East have reduced perceived risks in the market.
Limited regional confrontations over the weekend have led markets to anticipate a lower chance of escalation, alleviating fears of supply disruptions as no oil infrastructure was affected.
While caution remains over potential renewed hostilities, the immediate market outlook suggests increased stability. This easing in geopolitical concerns could apply further downward pressure on global oil prices.
Additionally, demand for oil, particularly across Asia, remains tepid. October’s import figures are expected to dip compared to recent months, with a marked decline in Chinese crude imports shaping a softer demand outlook.
Although some optimism surrounds China’s economic stimulus measures, these efforts primarily focus on consumer spending and electric vehicle adoption, which may not significantly drive up oil consumption.
Weak demand and OPEC+’s intentions to increase production could further pressure global crude prices.
Analysis provided by George Pavel, General Manager at Capex.com Middle East.
