Weak global demand caps a run up in crude oil prices

Crude oil prices rise slightly to $75.7/bbl in October amid geopolitical uncertainties

Crude oil prices increased 2% on-month to $75.7 per barrel (bbl), on average, in October but fell ~17% on-year.

Though geopolitical uncertainties pushed prices up a tad in the first half of the month, subdued demand, especially from major economies such as China, prevented a further rise.

China announced a stimulus package in late September to combat the current downturn in its economy, but lack of demand-side measures kept the sentiment sluggish.

The recent flare-up in geopolitical tensions has limited the decline and prices are expected to stay in the $74-79 per bbl range in the fourth quarter of this year. Developments in the Middle East remain a key monitorable.