Oil prices have hovered around their lowest point since July due to increasing concerns over demand from China, as the nation experiences deflation.
The global benchmark, Brent crude, saw a modest increase of 0.9% to just over $80 per barrel after dipping to a three-month nadir the previous Wednesday, marking a 7% decline over two days.
The additional cost factored into oil prices following the onset of conflict in the Middle East has waned as the hostilities have been confined to Israel.
Julius Baer analyst Norbert Ruecker remarked, “The market’s attention appears to be transitioning from a geopolitical fear-driven stance to one grounded in tangible economic fundamentals.
The combination of plentiful supplies, gradual production increases, and plateauing demand presents a fundamentally weak backdrop.”
Ricardo Evangelista, a senior analyst at ActivTrades, noted, “Inflation figures from China, the leading oil importer globally, indicate a trend towards disinflation that could signal an impending economic deceleration, potentially leading to a downturn in energy usage.
