Oil demand outlook weakens amid US trade policy pressures — Bloomberg

Bloomberg reports that escalating tensions surrounding US global trade policy are further clouding the outlook for crude oil demand. The energy market faces additional pressure from two key factors, growing expectations of a supply glut later this year and ongoing concerns about China's economic trajectory as the world's top crude importer.

Joe DeLaura, energy strategist at Rabobank, observes that market participants are increasingly focusing on fuel demand dynamics and escalating trade disputes. This shift comes as Bloomberg analysts report Saudi Arabia's move to raise official selling prices for Asian buyers, a decision interpreted as a “vote of confidence in demand.” Notably, the recent OPEC+ announcement of planned August production increases had minimal impact on crude prices.

Mark Malek of Siebert notes the growing complexity of supply-demand analysis, citing multiple disruptive factors, including the expansion of the “gray market” and the accelerating impact of news flow on market sentiment.