Goldman cuts 2025 Brent crude outlook to $77, pointing to China demand woes (NYSEARCA:USO)

Crude futures snapped a three-session rally on Tuesday, surrendering the previous day’s strength triggered by escalating Middle East tensions and news that Libya’s rival eastern government was shutting down most of the country’s oil production, as well as Fed Chair Jerome Powell’s recent remarks signaling the start of monetary policy easing.

Global crude prices traded with a “downside bias” compared to last month, “responding to concerns about global demand, even as physical markets remain tight,” analysts at ICICI Bank wrote, according to Marketwatch, but the extent of the downside has been “limited by ongoing geopolitical tensions as Israel-Hezbollah tensions appear to have escalated,” as well as the reports out of Libya.