Lagos — Crude oil futures rebounded for the third consecutive day, recovering to a certain extent from recent lows. The market found some support in increasing geopolitical concerns and signs of increased demand. The ongoing escalation of the Ukraine conflict could affect the market as traders assess the possible developments. The potential disruption of Russian oil exports could fuel some supply concerns.
On the demand side, U.S. crude oil inventories increased by 4.75 million barrels in mid-November, beating expectations. Concerns about lower demand could weigh on the market. In this regard, traders could monitor additional crude inventory data later today. The latter could introduce some volatility to the market. However, a recovery in Chinese oil demand, with crude imports expected to reach near-record levels by November’s end could contribute to a more bullish sentiment. Chinese demand could strongly affect the market’s directly.
Meanwhile, Iraq’s fuel oil exports are set to reach record levels in 2024, driven by increased shipments and reduced domestic demand. This surge could contribute in dampening the market’s prospects as the rise in oil exports could ease prices.
*Terence Hove Financial Markets Strategist Consultant to Exness
