Brent declines following EIA oil demand downgrade

The front-month ICE Brent contract has fallen by $0.40/bbl on the day, to trade at $66.83/bbl at 09.00 GMT.

IMAGE: Oil barrels. Getty Images

Upward pressure:

Brent crude’s price has found some support as market participants await the final outcome of US-China trade talks.

Representatives from the two countries, who met in London this week, have agreed on a framework to ease trade tensions. However, the deal is yet to be reviewed and approved by US President Donald Trump and his Chinese counterpart Xi Jinping.

“From a market sentiment perspective, it’s a light nod toward de-escalation, but let’s not kid ourselves —this wasn’t a breakthrough,” SPI Asset Management managing partner Stephen Innes remarked.

Downward pressure:

Brent’s price has moved lower, shedding yesterday’s gains, after the US Energy Information Administration trimmed its projection for 2025 global oil demand to 103.5 million b/d, noting an annual growth of about 800,000 b/d, down from the 1 million b/d projected last month.

Lower oil consumption is expected to raise inventories by more than 800,000 b/d this year, Hynes said.

A slowdown in global oil demand growth will automatically push oil prices lower, according to market analysts.

By Aparupa Mazumder

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