Investing.com-- Oil prices edged higher Tuesday, rebounding after logging steep losses even as a group of top producers once more cut demand growth forecasts.
At 08:20 ET (13:20 GMT), Brent oil futures rose 0.6% to $72.28 a barrel, while West Texas Intermediate crude futures rose 0.7% to $68.52 a barrel.
Both contracts lost over 2% on Monday, having fallen by more than 5% over the previous two trading sessions.
OPEC cuts global demand growth forecasts
The Organization of Petroleum Exporting Countries cut its estimate of global oil demand growth for both this year and next, for the fourth month in a row, citing downward revisions in China and other Asian markets.
OPEC released its monthly market report earlier Tuesday, and its now expects global oil demand to grow by 1.82 million barrels per day this year, down by 107,000 bpd from last month’s assessment.
Total (EPA:TTEF) world oil demand is anticipated to reach 104.0 million bpd in 2024, bolstered by strong transportation fuel demand and ongoing healthy economic growth, particularly in a number of non-OECD countries, said OPEC.
"Our oil balance through 2025 shows a surplus on the assumption that OPEC+ unwinds cuts as currently planned and that we do not see any dramatic changes to Iranian export volumes," sad analysts at ING, in a note.
China stimulus underwhelms, more measures awaited
China announced on Friday a debt swap package worth about 10 trillion yuan ($1.6 trillion) to help support local governments in the coming years.
But the measure is expected to provide little direct support to the economy. Beijing also held back from announcing any direct fiscal measures to support the property market and private consumption.
The lack of direct measures rattled sentiment towards the worlds’ biggest oil importer, spurring increased concerns that demand in the country will worsen further.
China’s oil imports have fallen steadily in recent months, while fuel demand in the country was also seen easing.
US supply fears from Rafael ease
Easing concerns over supply disruptions in the U.S. also weighed on oil prices, as tropical storm Rafael was seen dissipating over the Gulf of Mexico.
Some energy operators in the region were also seen resuming operations, although Reuters reported that about a quarter of oil production in the region still remained offline.
Rafael weakened to a tropical storm from a hurricane after passing through Cuba, and is expected to weaken further as it drifts southwest.
(Ambar Warrick contributed to this article.)