Oil Demand Rebound Faces Challenges Amid Middle East Supply Risks
Sunday, 13 October 2024, 01:39
Oil Market Recap and Forecast
Oil demand rebound faces challenges due to rising geopolitical tensions and supply risks. Crude oil prices have seen notable volatility, closing last week at $75.56, up $1.18 (+1.59%). The pivot at $75.10 will determine market direction this week.
Middle East Tensions Lift Prices
- Iran's missile attack on Israel raises fears of supply disruptions.
- The geopolitical risk premium remains high, causing market unease.
Hurricane Milton Adds to U.S. Supply Concerns
- The hurricane caused gasoline shortages, impacting U.S. supply.
- Infrastructure damage in the Gulf of Mexico poses ongoing challenges.
Demand Outlook Dampens Optimism
- China's economic slowdown raises concerns about oil consumption.
- Rising crude inventories in the U.S. reflect weaker demand.
Macroeconomic Pressures Weigh on Prices
- The Federal Reserve's interest rate cuts may boost demand.
- Sluggish industrial activity hurts global demand growth.
Market Forecast: Cautiously Bullish
- Geopolitical risks may elevate prices if tensions escalate.
- Downside risks remain with faltering demand in China and high inventories.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.