Oil Prices Dip Amid Supply Forecasts and Chinese Stimulus Optimism
OIL & GAS

Oil Prices Dip Amid Supply Forecasts and Chinese Stimulus Optimism

Oil prices edged lower as investors weighed ample supply projections against expectations of rising demand fueled by Chinese stimulus measures.

Brent crude futures slipped by Rs 8 to settle at Rs 73.33 a barrel, while U.S. West Texas Intermediate crude fell Rs 7 to Rs 69.95 a barrel.

The International Energy Agency (IEA) predicts non-OPEC+ countries, including the U.S., Canada, Guyana, Brazil, and Argentina, will increase supply by 1.5 million barrels per day (bpd) in 2025. In contrast, global demand is projected to grow by 1.1 million bpd, mostly in Asia, driven by China's recent economic measures.

Despite expectations of a tighter market next year, supply is likely to outpace demand growth, keeping prices in a stable range. “With a fairly comfortable balance, there’s little reason for prices to break out of this range for now,” said Warren Patterson, Head of Commodities Research at ING.

Both Brent and WTI benchmarks are poised for a weekly gain exceeding 3%, supported by potential supply disruptions from stricter sanctions on Russia and Iran, and hopes for stronger Chinese demand.

China, the world's largest oil importer, reported annual growth in crude imports for the first time in seven months this November, propelled by lower prices and stockpiling. The trend is expected to continue into early 2025 as refiners leverage discounted supplies from Saudi Arabia and rush to utilize import quotas.

Meanwhile, Goldman Sachs anticipates U.S. shale oil production to grow by 600,000 bpd by 2025, although growth may slow if Brent crude dips below $70 a barrel.

Investors remain focused on next week's Federal Reserve interest rate decision and its potential impact on the energy market.

Oil prices edged lower as investors weighed ample supply projections against expectations of rising demand fueled by Chinese stimulus measures. Brent crude futures slipped by Rs 8 to settle at Rs 73.33 a barrel, while U.S. West Texas Intermediate crude fell Rs 7 to Rs 69.95 a barrel. The International Energy Agency (IEA) predicts non-OPEC+ countries, including the U.S., Canada, Guyana, Brazil, and Argentina, will increase supply by 1.5 million barrels per day (bpd) in 2025. In contrast, global demand is projected to grow by 1.1 million bpd, mostly in Asia, driven by China's recent economic measures. Despite expectations of a tighter market next year, supply is likely to outpace demand growth, keeping prices in a stable range. “With a fairly comfortable balance, there’s little reason for prices to break out of this range for now,” said Warren Patterson, Head of Commodities Research at ING. Both Brent and WTI benchmarks are poised for a weekly gain exceeding 3%, supported by potential supply disruptions from stricter sanctions on Russia and Iran, and hopes for stronger Chinese demand. China, the world's largest oil importer, reported annual growth in crude imports for the first time in seven months this November, propelled by lower prices and stockpiling. The trend is expected to continue into early 2025 as refiners leverage discounted supplies from Saudi Arabia and rush to utilize import quotas. Meanwhile, Goldman Sachs anticipates U.S. shale oil production to grow by 600,000 bpd by 2025, although growth may slow if Brent crude dips below $70 a barrel. Investors remain focused on next week's Federal Reserve interest rate decision and its potential impact on the energy market.

Next Story
Infrastructure Transport

Two Mega Airports Set to Open in India in October

India is set to witness the inauguration of two major airports this month: Navi Mumbai International Airport (NMIA) in the Mumbai Metropolitan Region and Noida International Airport (NIA) in the Delhi NCR. Prime Minister Narendra Modi will inaugurate NMIA on 8 October 2025, while the Union Civil Aviation Minister, Kinjarapu Ram Mohan Naidu, confirmed that NIA will be inaugurated on 30 October 2025.Both airports aim to meet the rising demand for air travel and ease congestion at existing airports in the country’s largest cities. The DGCA has already granted an aerodrome license to NMIA, allow..

Next Story
Infrastructure Transport

Adani Group to Invest Rs 300 Bn in Navi Mumbai Airport Expansion

The Adani Group plans to invest an additional Rs 300 billion to expand the Navi Mumbai International Airport, ahead of its inauguration by Prime Minister Narendra Modi this week. The airport is set to begin operations in December 2025.The group has already invested around Rs 200 billion in developing the greenfield airport and has started design work for the second terminal, which is expected to be commissioned by 2029. Funding for this expansion will come through a mix of debt and equity, while the Maharashtra government holds a 26 per cent stake in the project.Once fully operational, the air..

Next Story
Infrastructure Energy

Manohar Lal to Attend G20 Energy Transitions Meeting in South Africa

Manohar Lal, Union Minister of Power, will participate in the G20 Energy Transitions Ministerial Meeting (ETMM) from 7th to 10th October 2025 in KwaZulu-Natal Province, South Africa, hosted under the South African G20 Presidency. The meeting will bring together energy leaders from major economies to discuss key issues shaping the global energy future.The Minister will attend sessions on “Energy Security, Clean Cooking, Affordable and Reliable Access” and “Sustainable Industrial Development”, aimed at strengthening international cooperation for universal access to affordable, reliable, ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?