Crude oil futures are experiencing pressure amidst concerns about global demand linked to escalating trade tensions, especially between the U.S. and the European Union. These tensions are raising fears of an economic slowdown, impacting growth in fuel consumption. Both the International Energy Agency and OPEC have reduced their 2025 demand forecasts, contributing to a bearish outlook on prices. OPEC+ is unwinding production cuts, increasing crude supply, which may further pressure prices. Traders are advised to watch policy changes and upcoming crude inventories data to gauge short-term market direction.
The prevailing softness reflects mounting concerns regarding global demand in the context of escalating trade tensions between the United States and its trading partners, including the European Union.
Both the International Energy Agency and OPEC have revised down their 2025 demand forecasts, indicating a cautious outlook on demand that is set to weigh on prices.
On the supply front, OPEC+ continued to unwind its production cuts, resulting in increased crude availability and pressure on prices.
Traders could continue to monitor policy changes from oil producers and the progress in negotiations between the US and the EU.
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