Oil prices rebounded slightly on Wednesday after a series of declines, with signs of tight supply caused by production cuts by major oil producers overshadowing concerns about demand in some countries, Jinshi reported. OPEC announced on Sunday that it would extend production cuts until the end of the second quarter, which boosted oil prices. The extension of production cuts has created some supply constraints, especially in Asian markets, and tanker activity has been disrupted by attacks by Houthi rebels in the Red Sea that trapped oil in transit.
On the other hand, the lack of stimulus policies in some countries to boost the economy has raised concerns about weak growth in oil demand. The market is particularly keen to see further fiscal expansion in some countries to help achieve growth targets and boost oil demand. The market is currently focusing on Powell's speech and U.S. employment data. Investors believe that signs of interest rate cuts by the Federal Reserve will be beneficial to both the economy and oil demand.