Oil prices increased for a second consecutive day following an announcement from China, the largest global oil importer, stating its plans to boost consumption by raising incomes. Brent crude surpassed $71 per barrel, rising by 1% compared to its previous level on Friday, while West Texas Intermediate stood near $68. Beijing also intends to disclose measures to stabilize stock and real estate markets, increase wages, and enhance the birth rate, as reported by the state-run news agency Xinhua.

The decline in oil prices by over $10 per barrel since January's peak is attributed to factors such as the escalating trade tensions sparked by the US President's policies, the OPEC+ decision to raise oil supply, and potential progress towards resolving the conflict in Ukraine. Goldman Sachs Group Inc. adjusted its Brent crude forecast downward in response to this pessimistic outlook, with analysts like Daan Struyven noting reduced oil demand growth projections due to global growth risks posed by tariffs.

The analysts mentioned, "While the recent $10 per barrel decrease exceeds the change in our fundamental base case, we are revising our December 2025 Brent forecast to $71, down by $5." They further emphasized the potential downward risks to their forecast in the medium term due to the possibility of further tariff escalations and prolonged OPEC+ production increases.

Additionally, Defense Secretary Pete Hegseth stated that US military strikes on Yemen's Houthi rebels will continue until the group stops its attacks on civilian and military ships in the Red Sea. This directive follows an order from President Trump to target Houthi-controlled sites in Yemen.

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