Lagos — Crude oil futures pointed to a lower weekly close, driven by concerns surrounding demand growth in 2025, particularly from China, the world’s largest oil importer. Sinopec, China’s state-owned refiner, indicated that the country’s crude imports may peak as early as 2025, with overall oil consumption expected to plateau by 2027 due to weakening demand for diesel and gasoline. This uncertainty is pressuring global crude prices, as market participants worry that reduced demand from China could result in a supply glut.
Additionally, OPEC+ has lowered its global oil demand growth forecast for the fifth consecutive month, reinforcing bearish market sentiment and further raising concerns that demand may not keep up with supply. The stronger U.S. dollar, now at a two-year high, is also contributing to downward pressure on oil prices.
The Federal Reserve’s cautious approach to rate cuts in 2025 adds to concerns about slower economic growth, potentially limiting oil demand. While G7 countries are considering tightening sanctions on Russian oil, which could offer some support to prices, it also introduces uncertainty.
*Ramy Zeytouni – Market analyst
