Both benchmarks saw a decline of over 5% across the last two sessions, affected by China’s 10 trillion yuan debt relief plan aimed at alleviating local government financial pressure. Analysts, however, indicated the package might fall short of significantly boosting economic growth.

The OPEC report is expected to provide direction on demand forecasts, with the possibility of further demand downgrades through 2025, which could add pressure to prices. ING analysts noted the recent shift in Brent and WTI time spreads toward contango, suggesting a well-supplied market.

Meanwhile, a stronger U.S. dollar, fuelled by expectations around upcoming U.S. inflation data and Federal Reserve commentary, added further pressure on oil prices by making dollar-denominated commodities like oil more expensive for foreign buyers. (ET)