Oil prices remained largely unchanged as OPEC stuck to its demand growth forecasts and geopolitical tensions persisted. Brent futures and WTI crude registered marginal gains. China’s weakening demand countered the optimism. Ongoing conflicts in the Middle East heightened uncertainties. Traders took the attacks on energy facilities in Yemen and Russia in their stride. Concerns were eased by expectations of the delays not impacting oil prices in the long term.
More maritime carriers are avoiding the Red Sea due to attacks on vessels. Oil prices rose as tensions persisted in the Middle East following Houthi attacks on ships in the Red Sea.
Oil benchmarks are on track to decline for the first time in five years due to concerns about a supply surplus and weak Chinese demand. However, prices rebounded after Saudi Arabia and Russia urged OPEC+ members to join output cuts. Brent crude futures and U.S. West Texas Intermediate crude futures rose after hitting their lowest levels since June. The market is believed to be oversupplied, as reflected by the contangoed structure of the crude oil benchmarks.
