Concerns about demand limit the upside potential

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Driven by the U.S. sanctions on Iran's oil exports, crude oil rebounded in the short term. OPEC has received updated compensation production reduction plans from eight countries (reducing daily oil production by 305,000 barrels until June 2026), coupled with the U.S. intention to reduce Iran's energy exports to zero. The recent oil price rally is primarily driven by short-term news, reflecting supply disruptions and sentiment repair rather than fundamental improvements.

Although U.S.-Iran sanctions and OPEC quota adjustments may trigger periodic tensions, escalating global trade concerns and institutional downward revisions to demand forecasts will limit the upside of oil price rebounds.

USOIL
buy@62-63
tp:64-65

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