Oil Prices Hover at Two-Week Lows

Oil prices remained steady in Asian trading on Wednesday, hovering near two-week lows following OPEC's revised demand outlook and increasing attention on China's stimulus measures.

Market sentiment weakened as concerns about the U.S. economy rose ahead of crucial consumer inflation data due later. Speculation regarding a potential second Donald Trump presidency also loomed large.

Recent oil prices have suffered significant losses over the past three sessions, largely due to disappointing fiscal measures from China. Moreover, potential supply disruptions in the Gulf of Mexico have eased as tropical storm Rafael appears to be fading away.

A strengthening dollar also exerted downward pressure on crude prices, as anticipation surrounding Trump's proposed policies pushed the dollar to a four-month high.

As of 20:17 ET (01:17 GMT), Brent oil futures expiring in January dipped slightly to $71.86 a barrel, while West Texas Intermediate crude futures fell by 0.1% to $67.92 a barrel.

OPEC Cuts 2024, 2025 Demand Outlook Again

On Tuesday, the Organization of Petroleum Exporting Countries (OPEC) reduced its outlook for global oil demand growth for the fourth consecutive month, citing ongoing concerns about slowing demand in China and other key importers.

In a monthly report, OPEC projected that global oil demand would grow by 1.82 million barrels per day in 2024, a decrease of 107,000 bpd from the previous month's forecast. The cartel has been consistently lowering its demand outlook amid economic struggles in China, along with worries over a shift to cleaner fuels in various regions.

Despite these cuts, OPEC still maintains a more optimistic view of demand growth compared to other energy monitoring organizations, particularly the International Energy Agency (IEA), which is scheduled to release its monthly report on Thursday after making similar adjustments this year.

Earlier in November, OPEC had initially provided some support to oil prices by delaying production increases this year.

China Stimulus, US CPI in Focus

Oil markets are currently awaiting more indications regarding China's fiscal stimulus plans, following a recent 10 trillion yuan ($1.4 trillion) debt package that fell short of expectations. Analysts noted that clarity on how the Trump administration will engage with Beijing may influence further Chinese stimulus measures.

It is anticipated that Beijing will announce additional stimulus during a series of significant government meetings in December.

In the U.S., attention is on an upcoming consumer inflation report due later on Wednesday, which is expected to significantly impact the Federal Reserve's perspective on interest rates.