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OPEC reduces demand forecasts for 2025
Weak Chinese demand and non-OPEC+ supply growth weigh on oil prices
OPEC Cuts Outlook: OPEC lowers 2025 demand forecasts for the fifth straight month.
ECB Policy in Focus: EUR/USD rises 0.2% as markets anticipate a 25-bps ECB rate cut.
Gold Retreats: Prices dip from a two-week high amid steady U.S. inflation data.
ECB on watch
Today's focus is on the European market, with EUR/USD rising 0.2% to 1.0516 ahead of the European Central Bank's policy meeting, its final one for the year.
The ECB is anticipated to implement a fourth 25-basis-point rate cut, aiming to address the challenges of a eurozone economy teetering on the brink of recession and the looming threat of a new trade conflict with the US.
Commodities
Gold prices retreated from a two-week high as investors assessed the impact of U.S. consumer inflation data, which aligned with expectations, on the future trajectory of interest rates.
Gold saw some upward momentum earlier in the week, driven by increased safe-haven demand amid escalating geopolitical tensions in the Middle East and Asia. However, overall gains in metal markets remained limited due to the continued strength of the U.S. dollar.
In industrial metals, copper extended its rally, buoyed by optimism over potential additional stimulus measures from China.
Oil
Oil prices remained steady as concerns over weak demand and a larger-than-expected increase in U.S. gasoline offset gains from new EU sanctions targeting Russian oil flows.
Brent rose to $73.16 while WTI hovered near $69.87.
Adding to the cautious sentiment, OPEC on Wednesday reduced its demand growth forecasts for 2025 for the fifth consecutive month, marking the most significant downward revision yet.
