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Emkay Wealth Management Ltd, the wealth management arm of Emkay Global Financial Services in its latest press navigator report on Brent crude oil cited that the prices have seen a significant decline which is currently trading at US$ 63 per barrel, as markets are reacting to increasing concerns of a global economic slowdown. The dip is largely attributed to fears surrounding the fallout of recent U.S. tariff actions, raising questions about sustained global growth and demand.

The outlook on demand has been under pressure, with major international bodies previously estimating that global oil supply would either remain stable or slightly increase, while demand was expected to decelerate. These projections, coupled with signs of subdued economic activity, have further weighed on prices.

China, traditionally a major player in oil markets, has also pulled back from large-scale purchases. This trend is driven by multiple factors including its GDP growth slipping below 5%, weakened consumption demand, and a notable shift towards electric vehicles. Notably, even though the Energy Information Administration (EIA) has reported lower oil inventories, prices have remained suppressed. This anomaly has added to market concerns.

Meanwhile, OPEC+ has announced a phased rollback of oil output cuts, aiming to increase production by 411,000 barrels per day over the next three months. This move, combined with the ongoing U.S. tariff measures and indicators of a potential slowdown in the American economy, has intensified downward pressure on prices.

Given the current landscape—characterized by expanded output, fragile demand, and geopolitical uncertainties—the medium-term outlook for Brent prices remains bearish.

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