Oil market sentiment shifts amid changing geopolitical conditions – London Business News | Londonlovesbusiness.com

Crude oil futures stabilized this week, poised to end with some gains amid a cautious sentiment as traders weigh geopolitical developments in the Middle East.

Diplomatic efforts could help ease escalation fears and put a weight on oil prices. The market remains close to its lowest levels this year and could see more losses if the geopolitical conditions improve. However, a flare-up in tensions could push oil prices for a rebound.

At the same time, demand levels remain a concern for the market and continue to weigh on expectations. In this regard, traders could continue to monitor developments in China to gauge the impact of its slowing economic growth on crude demand levels, including the outcomes of China’s NPC Standing Committee meeting. Any signs of pro-growth policies could boost oil demand, supporting crude prices.