OIL
Oil prices continue to rise at a slow pace, in tune with what happened earlier in the week. However, the price of Brent crude remains lower than before the release of disappointing Chinese GDP data exactly a week ago. The decline in US oil inventories and the voluntary output cuts from major producers such as Saudi Arabia and Russia are supporting the price of oil. However, any upside is capped by the gloomy outlook for the Chinese economy. China is struggling to recover the growth levels we had been used to in the pre-pandemic years, and, being the world's largest crude importer, that is denting future oil demand prospects. The announcement on Wednesday that Beijing plans to deploy economic stimulus measures brought some hope to oil traders. Such measures could reset expectations, upgrading demand forecasts and boosting oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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