Oil prices are under pressure from weak Chinese demand, despite recent inventory draws and expectations of a potential interest rate cut.
Crude oil prices looked on track for a third weekly loss in a row, pressured by the perception of weaker-than-desired Chinese demand. Even so, oil made some gains earlier in the week, mostly on substantial inventory draws as reported by the American Petroleum Institute and the Energy Information Administration. The latest push for oil prices came from the U.S. Commerce Department, which reported GDP growth of 2.
On the other hand, Goldman Sachs analysts said this week that weak demand and slower GDP growth next year could shave some $11 off oil prices—if the U.S. imposes new tariffs on imported goods. The decline could deepen to $19 per barrel, the analysts said, if the Fed delays rate cuts until after 2025 on persistently high inflation. Interestingly, some oil market watchers appear to be bracing for more OPEC supply coming online in the second half of the year.
China Demand OPEC Interest Rates Inventory Refining Economy Supply Crude Oil
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