Weekly Crude Oil Review: WTI futures tilt towards $60 per barrel as demand trends trigger caution

WTI Crude oil futures fell near $60 per barrel before witnessing a recovery as optimism over the US-China 90-day trade truce lifted sentiment. The agreement eased demand fears from the world?s top oil consumers. The International Energy Agency or IEA raised its global supply forecast by 380,000 barrels per day, citing higher output from Saudi Arabia and other OPEC+ members as they unwind production cuts. However, further gains were limited by hopes of a US-Iran sanctions relief deal and a surprise build in US crude inventories. Broad demand worries are visible at global level. The IEA has stated that global oil demand growth is projected to slow from 990 kb/d in 1Q25 to 650 kb/d for the remainder of the year as economic headwinds and record EV sales curb use. Demand growth averages 740 kb/d in 2025 and 760 kb/d in 2026, despite accelerating OECD declines of -120 kb/d and -240 kb/d, respectively. IEA also noted that global oil stocks rose by 25.1 mb in March, led by a 57.8 mb increase in crude. Total OECD inventories increased by 3.1 mb, while non-OECD stocks rose by 21.3 mb and oil on water was up slightly by 0.7 mb. Preliminary data show global oil inventories built further in April.

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