Oil futures rose Monday, finding modest support after China eased its overall monetary policy stance for the first time in 14 years as the nation's Politburo vowed more forceful measures to boost the economy of the world's largest crude importer.
Geopolitical tensions and OPEC+ cuts support prices, while weakening Chinese demand tempers the market outlook.
Oil roses in early Asian trade, however, the near-term outlook remains bearish, said Hani Abuagla, XTB MENA's senior market analyst in an email.
Oil prices were mixed in early Asia trade on Monday as concerns over weak Chinese demand were offset by rising tensions in the Middle East following the rebel overthrow of Syrian President Bashar al-Assad.
The fall of the Assad regime in Syria will have no direct impact on world oil markets but could prove bullish in the short term and bearish longer term, depending on how the new political structure of the Middle East develops. Before the regime fell, there was uncertainty about the potential for the conflict between Israel, Hamas, Hezbollah and Iran to worsen and spread.
Bearish crude oil forecast ahead as weak demand and capped gains below $69.11 persist. Key levels to watch for traders in the coming week.
U.S. stocks traded mixed midway through trading, with the Dow Jones index falling around 0.2% on Friday.
The crude oil markets that I follow here at FX Empire are still range bound at this time. However, it is worth noting that we are getting close to the bottom of the range, so a bounce could be possible.
The crude oil markets that I follow here at FX Empire are both doing the same thing, which is to say they are testing the lower end of the range that they have been in for some time. At the end of the day, I suspect it will remain so.
Speaking to CNBC's Dan Murphy on Friday, Saudi Energy Minister Abdulaziz bin Salman said OPEC+ had to undertake a "reality check" and reconcile supply-demand signals with market sentiment. The minister said OPEC+ had "not necessarily" lost confidence in global crude appetite or in recoveries in China, but admitted that "what is not helpful was the fact that some [OPEC+] countries were not attending to their commitments properly.
Oil futures fell Friday and were on track for weekly losses a day after a decision by the Organization of the Petroleum Exporting Countries and its allies to further postpone a planned unwind of production cuts failed to soothe fears of a crude surplus.
WTI and Brent futures decline on weak demand and rising supply. OPEC+ cut extensions to 2026 fail to offset fears of a growing surplus.