Crude oil futures tumbled over the past week, falling more than 6% as concerns over weakening global demand and a resurgent supply outlook weighed on sentiment.
West Texas Intermediate (WTI) briefly hit a low of $56.39 before recovering to $59.24 by Thursday’s close. While dip-buying provided short-term support, the underlying market tone remains distinctly bearish as fundamental pressures intensify.
China Demand Slowdown Fuels Bearish Sentiment
Fresh economic data from China delivered a major blow to oil bulls. The country’s official manufacturing PMI slumped to 49.0 in April, signaling contraction and raising alarm over the health of the world’s largest crude importer. Of particular concern was the new export orders index, which plunged to its weakest level since 2012 outside of pandemic anomalies. Analysts responded by slashing full-year growth forecasts to just 3.5%, casting doubt on sustainable Chinese demand.
Though China’s March crude imports surged, analysts argue this was driven more by pre-sanctions stockpiling than any uptick in consumption. With Beijing’s fiscal stimulus measures struggling to gain traction, traders are increasingly skeptical of China’s ability to sustain meaningful crude demand growth in the near term.
Trade War Escalation Undermines Global Oil Demand Expectations
U.S.-China trade tensions are exacerbating the fragile demand picture.
