Oil prices have stabilized above $88 a barrel, following a surge in the previous session driven by a surprise decline in U.S. crude stocks and a slowdown in business activity in the world’s largest oil consumer. While Brent crude futures experienced a slight decline, U.S. West Texas Intermediate crude futures faced a more significant drop. This fluctuation is attributed to both geopolitical factors and economic concerns, with the perceived de-escalation of tensions between Iran and Israel potentially mitigating geopolitical risk premiums in the coming months. Meanwhile, a cooling in U.S. business activity and the possibility of interest rate cuts have shifted the focus to macroeconomic factors that could impact oil demand. Traders are now eagerly awaiting the release of official data on oil and product stockpiles for further insight into market conditions.