Analysts at Commerzbank pointed out that concerns about oil demand are overblown and expect an upward trend in oil prices in the coming weeks.
Canadian oil and gas pipeline company Enbridge pointed out that despite weak economic activity and signs of slowing inflation, the employment data remained strong, so it is difficult to determine the future direction of oil demand.
On the supply side, Western sanctions on Russian oil are creating further market volatility.
The Group of Seven (G7) and the European Union began to ban imports of Russian seaborne crude oil in December last year, and further extended the ban to refined oil products in February this year.
PVM oil market analyst Stephen Brennock believes that the sharp drop in oil prices in the past week was not driven by fundamental factors, but was affected by recession risks and a new round of US banking crisis.
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