WTI crude oil prices remained below $76 per barrel and were on track for a second weekly decline as US stockpiles continued to rise and lingering concerns about China’s demand recovery persisted.
Although analysts are confident that Asia’s largest economy will recover this year, the timing and extent of China’s economic recovery remain highly uncertain, which is why the commodities boom that China’s reopening brought began to wane. Additionally, the most recent data demonstrated that US crude inventories expanded significantly more than anticipated for a sixth week.
In addition, the bearish case for oil was bolstered by robust Russian crude exports amid rising Asian demand and concerns of a global economic slowdown.
In the meantime, earlier this week, an OPEC+ committee recommended maintaining constant crude production due to uncertainty regarding the impact of China’s economic reopening and the most recent sanctions on Russian supply.
