403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Today's markets analysis on behalf of Joseph Dahrieh, Managing Principal at Tickmill
(MENAFN- Your Mind media ) 13th November 2024
Crude oil futures opened higher, posting modest gains following three consecutive sessions of declines. However, broader market sentiment remained cautious, largely due to OPEC’s recent revision of its global oil demand growth forecast for both 2024 and 2025. OPEC adjusted its projections downward, citing a significant reduction in expected demand growth, particularly in China, the world’s largest oil importer. This revision, coupled with concerns about rising global oil inventories, suggests that any potential upside in crude prices will face significant headwinds. The bearish outlook on demand, particularly from major economies like China, limits the market’s ability to sustain upward momentum in the near to medium term, leading to expectations of a restrained pricing environment.
Moreover, the prevailing concerns over global oil demand are compounded by expectations of increased U.S. oil production and the potential for geopolitical shifts, which have further weighed on market sentiment. The absence of a substantial fiscal stimulus in China, coupled with ongoing structural challenges, has dampened the demand outlook for the region. As a result, oil prices are expected to consolidate at current levels for an extended period. At the same time, geopolitical risks, including potential supply disruptions from Iran or escalating tensions between Iran and Israel, could introduce short-term volatility.
Crude oil futures opened higher, posting modest gains following three consecutive sessions of declines. However, broader market sentiment remained cautious, largely due to OPEC’s recent revision of its global oil demand growth forecast for both 2024 and 2025. OPEC adjusted its projections downward, citing a significant reduction in expected demand growth, particularly in China, the world’s largest oil importer. This revision, coupled with concerns about rising global oil inventories, suggests that any potential upside in crude prices will face significant headwinds. The bearish outlook on demand, particularly from major economies like China, limits the market’s ability to sustain upward momentum in the near to medium term, leading to expectations of a restrained pricing environment.
Moreover, the prevailing concerns over global oil demand are compounded by expectations of increased U.S. oil production and the potential for geopolitical shifts, which have further weighed on market sentiment. The absence of a substantial fiscal stimulus in China, coupled with ongoing structural challenges, has dampened the demand outlook for the region. As a result, oil prices are expected to consolidate at current levels for an extended period. At the same time, geopolitical risks, including potential supply disruptions from Iran or escalating tensions between Iran and Israel, could introduce short-term volatility.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment