Crude oil prices have stabilized around US$78.40/barrel after a recent decline, according to analyst Kelvin Wong from OANDA. This is largely due to positive factors such as consecutive weeks of U.S. crude oil stockpile declines and upcoming stimulus measures from China.
If the week ends with a gain, it will be the first time in three weeks, as reported by Reuters. The increase in prices can be attributed to strong demand indicated by economic reports from key markets, including China’s 0.3% inflation rate for April and positive figures for retail sales and industrial production in the United States.
However, there are concerns about a potential deficit fueling global inflation, as the International Energy Agency (IEA) has revised its forecast for global oil demand downwards. Weaker demand in developed countries has led to a reduction of 140,000 barrels daily in the IEA’s demand outlook for this year. IEA head Fatih Birol has urged OPEC+ to be cautious about withholding supply to avoid potential negative consequences.
