Oil prices stabilized near their lowest levels in two weeks, as economic data from China and forecasts of rising temperatures in various regions impacted global demand expectations. Brent crude rose by 0.54% to reach $77.5 per barrel, while West Texas Intermediate (WTI) crude increased by 0.46% to $73.51 per barrel. However, prices remained low compared to the beginning of the month.
Economic data from China heightened concerns about global oil demand growth, especially after an unexpected contraction in industrial activity in January. These figures are seen as a signal that economic recovery in China, the world’s largest oil importer, remains unsteady, raising doubts about the sustainability of global oil demand.
On the other hand, U.S. sanctions on Russian oil trade posed additional challenges, with Chinese refineries in Shandong affected by a new ban that reduced supplies by as much as one million barrels per day. With the rising costs of alternatives, some Chinese refineries have shut down or halted operations indefinitely, further straining the country’s refining sector.
In the U.S. and Europe, forecasts of warmer weather have led to reduced demand for heating fuel, contributing to the drop in prices. However, markets remain cautious as the implementation of new U.S. tariffs approaches, which could impact global economic growth and maintain pressure on oil prices in the near future.
