Surprisingly, Crude Oil prices increased during the third week of September 2024 and hit a two-week high amid a large interest rate decrease by the US Federal Reserve (US Fed) and dwindling global stockpiles, which improved sentiments in both the physical and futures markets. However, in recent months, the Crude Oil market has been grappling with volatility between bullish and bearish factors amid the uncertainty surrounding global supply and demand brought on a fall in consumption in China. On one hand, concerns about a potential decline in demand from China, the world's largest oil importer, have weighed on prices. The International Energy Agency (IEA) revised its global Crude Oil demand forecast downward, citing slower Chinese demand growth as a primary reason.

However, the Crude Oil market has rebounded recently by the strategic move of OPEC+ members to pause its planned production hike of 180,000 barrels per day in October and November. This move aimed to counterbalance the potential impact of declining demand and maintain market stability. Additionally, growing optimism that the U.S. Federal Reserve would implement a rate cut has helped to bolster prices amid a 50-basis point (bps) reduction in US interest rates to 4.75–5% and a drop in global stockpiles, which helped allay some demand worries brought on by China's sluggish consumption. A rate cut could stimulate economic activity and increase Crude Oil demand. Consecutively, Crude Oil prices should be supported by the world's diminishing crude stockpiles. The world's largest producer, the United States, saw a one-year low in its crude inventories last week. Furthermore, disruptions in Crude Oil production in the Gulf of Mexico, with approximately 100,000 barrels per day remaining offline, have provided a short-term boost to prices. Moreover, a fire broke out at the second-largest oil refinery in Greece with massive flames looming over the refinery on 17^th September 2024 which is situated around 70 kilometres west of Athens. This disruption in production has further supported the uptrend. Henceforth, the Crude Oil prices have rebounded followed by a significant downtrend with Brent settling at USD 73.2/barrel at an incline of 2.8% while WTI at USD 69.48/barrel at a climb rate of 2.2% during the third week of September 2024.

As per ChemAnalyst, the future trajectory of Crude Oil prices will depend on the evolution of global economic conditions which is expected to increase the demand for Crude Oil in the upcoming weeks. Moreover, the actions of OPEC+ could create a supply crunch in the market which might lead to a bullish sentiment for a while.