Oil futures return most of the previous day’s gains as the ongoing trade war between the U.S. and China keep concerns about weaker demand alive at the same time that OPEC and its allies raise output.
In China, the world’s biggest crude importer, “the problem is deflation/stagflation,” Mizuho’s Robert Yawger says in a note, pointing to a further decline in Chinese producer prices.
The EIA lowered its oil demand growth estimate for this year to 900,000 barrels a day from 1.3 million barrels a day, citing fallout from tariffs, and cut its 2025 price estimate for Brent to $68 a barrel from $74.