Demand for crude %Oil in China continues to weaken, pressuring global markets.
The latest data shows that refiners in China processed 12.6 million barrels per day of crude oil in August, down 10% month-over-month and down 17.5% from a year earlier.
Official data also shows that crude oil inventories in China rose at a pace of 3.2 million barrels per day throughout August, the largest monthly buildup since 2015.
Analysts say the latest numbers suggest that crude oil demand in the nation of 1.4 billion people is now at its weakest level since August 2022.
The situation in China, which is grappling with an economic slowdown, has led analysts, traders and speculators to grow increasingly bearish on the global oil market.
Analysts at Swiss bank UBS (NYSE: $UBS) have revised down their oil price forecasts between now and 2026, citing weakening global demand, particularly in China.
The new forecast from UBS calls for Brent crude oil, the international standard, to be trading around $75 U.S. per barrel by 2026, down from an earlier forecast of $80 U.S. per barrel within the next 18 months.
UBS said in its new forecast that OPEC+ will likely have to delay the unwinding of its voluntary production cuts until 2027 or 2028, at the earliest.
Brent crude oil is currently trading at $73.33 U.S. per barrel.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading at $70 U.S. a barrel, down from more than $80 U.S. per barrel earlier this year.