Oil continues its decline for the second session amid pessimism about global demand.

Crude oil contracts continued their losses during trading on Wednesday, affected by investors' pessimistic sentiment regarding oil demand forecasts in the world's largest crude markets; the United States and China, due to China's statements yesterday and preliminary data released in the United States.

Oil prices saw a sharp decline yesterday after the Chinese government stated in a press conference by the National Development and Reform Commission that the Chinese economy is facing strong downward pressures, prompting the World Bank to warn of a potential deepening of the economic slowdown in China, with expectations of a potential weakening of the economy next year.

This led to significant investor frustration in the oil market, amid expectations that the potential slowdown that China - the world's largest crude oil importer - may experience due to these pressures could lead to reduced oil demand in the People's Republic.

On the other hand, data from the American Petroleum Institute revealed a significant increase in U.S. crude inventories, by about 11 million barrels, which was much higher than expected, causing further deepening of oil losses during today’s session as well, with expectations of a potential weakening of oil demand from the largest crude consumer in the world.

In addition, the U.S. Energy Information Administration revised down its oil demand forecasts for 2025, citing the economic slowdown in China and North America as the main reason for this decline, which increased pressure on oil prices.

Moreover, oil prices fell on Tuesday due to news of a potential ceasefire between Hezbollah and Israel, despite ongoing fears about potential Israeli strikes on Iranian oil facilities.

In terms of trading, Brent crude futures fell 1.05% to $76.57 per barrel, after a 4.6% drop the previous day, while U.S. West Texas Intermediate crude futures declined by 1.03% to $73.05 per barrel.