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Oil recovery falters due to demand concerns

Posted on by L. Dreeye
Oil recovery falters due to demand concerns

Crude oil’s early rebound from yesterday’s big sell-off remains unchanged, with futures settling lower for a second straight session, with the focus on the prospect of oversupply in 2025.

“The strict focus on global and US oil balances still has a bearish bias, which is likely to become even more negative as the fourth quarter progresses,” Ritterbusch said in a note.

OPEC+’s decision to abandon planned production increases starting in December or unexpected bullish economic surprises from China could soften the bearish outlook, although “any new economic forecasts from China are much more likely to miss expectations than the above.” the company adds.