Investing This week's economic data projections made investors cautious, while OPEC cut its demand growth forecast for 2024.
Oil prices have rebounded sharply from more than seven-month lows. This is due to fears of an escalating conflict between Iran and Israel. This causes traders to increase the risk premium on crude oil. There have also been reports in the media that Iran may launch an attack on Israel this week.
But the overall increase is still limited by demand concerns. Especially after weak economic figures from major importing countries like China. As investors worry about a recession in the US.
Oil for October delivery was down 0.4% at $81.94 a barrel, while it was down 0.4% at $77.98 as of 21:35 ET (01:35 GMT).
OPEC cuts oil demand forecast
The Organization of the Petroleum Exporting Countries (OPEC) expects oil demand to grow by 2.11 million barrels per day in 2024, down from an earlier forecast of 2.25 million barrels per day.
According to the monthly report released on Monday. The panel cited growing misgivings about China. Because the country is still struggling with post-Covid economic recovery.
The lower forecast casts doubt on the scale of OPEC's plans to start ending production cuts.
The cuts raise concerns about falling global oil demand this year. Especially amid fears of sluggish demand in China. It is the world's largest oil importer.
Monday's demand forecasts come months before a panel of producers gathers to decide the direction of output for the coming month.
Monitor additional economic data.
Oil markets are still waiting for several key economic data this week to learn more about growth and interest rates.
Inflation data is scheduled for release on Wednesday. This is expected to affect US interest rates. Investors are predicting an interest rate cut of 25 or 50 basis points in September.
In addition to inflation data, data from and from the US is also scheduled for release this week.
Information and data from China are scheduled to be released this week. and provide additional information on the world's largest crude oil importing countries.