Oil Prices Rise on US Strategic Reserve Purchases, Boosted by Economic Hopes
Oil prices remained steady as concerns over crude oversupply and softer fuel demand growth persisted. Despite OPEC+ cuts and a pledge to reduce crude oil production, investors remain skeptical about compliance. Non-OPEC countries' output growth is expected to lead to excess supply next year. The market awaits clear data points on voluntary output cuts, which will likely result in volatility and directionless prices. Additionally, weak domestic demand in China and deflationary pressures cast doubt on the country's economic recovery. Investors are also monitoring central bank interest rate decisions and U.S. inflation data for potential impacts on the global economy and oil demand.