Oil Prices Take a Sip‑Down: China’s Cooling Demand Still Drains the Market
Good news? Not quite. Crude oil futures are headed for a weekly dip as pundits keep worrying that China‑the world’s biggest crude fan‑club‑hasn’t decided to keep pumping its pipeline.
What’s blowing up in China’s refineries?
- Crunch time: October saw oil refineries process 4.6% less crude than the same month last year.
- Factory output is still stuck in a tux‑paradise cruise, bouncing slower than a sluggish turtle.
- Property sector: still stuck in a tumble‑log loop, not moving fast enough to lift the economy.
Why traders are playing it safe
Because of the lack of sunny signs that could lift prices, the market mood is dark and gloomy for the mid‑term. China’s slumped demand and the idea that US + OPEC+ may bump up production make a dramatic rally less likely.
Supply outshining demand soon to be 2025
Big players such as the International Energy Agency say the globe will see oil ‘supplies > demand’ by 2025 – even if OPEC+ keeps its cuts.
U.S. inventories adding stress to the situation
- U.S. crude stocks jumped much more than the market expected last week.
- Although gasoline and distillate lots fell, the overall supply story keeps the mood “frighteningly bearish.”
What does it mean for the future?
With the supply side still heavy and demand braving a cold shoulder, the oil market will have to keep fighting the headwinds. There’s little chance for a significant bounce‑back unless demand physics change a lot or a geopolitical drama sparks the market. Stay tuned.
