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US oil falls to $56.76 due to weak demand

Rising supply and weak outlook worsen losses

📉 Factors affecting the decline: Oversupply from OPEC+: Increased production from some member states, despite geopolitical challenges, contributed to a buildup of supply in the markets. Slowing global demand: Declining industrial activity in China and Europe, along with weak US indicators, raised concerns about a decline in energy consumption. Negative economic data: Declining consumer confidence and disappointing data from major economies increased selling pressure in oil markets.

Markets are concerned about a global slowdown:

Growing concerns about the global economy entering a slowdown have pushed investors toward safe havens at the expense of growth-linked assets like oil.

Forecast:

Analysts believe that continued selling pressure could push prices to test the $55.00 level and possibly lower, absent intervention from OPEC+ or a sudden improvement in demand indicators.