International benchmark Brent oil costs fell under $70 a barrel on Tuesday for the primary time since December 2021 as OPEC reduce its demand forecast for the second time in two months.
Brent hit a low of $69.08 a barrel, the bottom since Dec. 2, 2021, whereas U.S. crude traded at $65.82 a barrel, the bottom since Might 4, 2023.
Listed here are Tuesday’s power costs:
- West Texas Intermediate October contract: $66.34 a barrel, down $2.38, or 3.5%. Yr-to-date, US crude is down 7.4%.
- Brent November contract: $69.70 a barrel, down $2.14, or 3%. Because the starting of the yr, the worldwide benchmark has declined by 9.6%.
- RBOB Gasoline October contract: $1.87 a gallon, down 4 cents, or 2.1%. Because the starting of the yr, gasoline has turn out to be cheaper by 10.7%.
- Natural gas October contract: $2.22 per thousand cubic ft, up 5 cents, or 2.4%. Yr thus far, gasoline is down 11%.
OPEC now expects demand to develop by about 2 million bpd in 2024, about 80,000 bpd slower than the earlier forecast. The oil producer group forecast demand development of 1.7 million bpd subsequent yr, about 40,000 bpd lower than preliminary expectations.
OPEC reduce its August demand outlook resulting from decreased consumption in China, the world’s largest crude importer.
Issues about softening demand in China as gross sales of electrical automobiles surge have loomed over the oil marketplace for months. OPEC+ can also be anticipated to extend manufacturing in December, with Morgan Stanley and different market analysts forecasting a surplus in 2025.
Oil costs bought off final week as bearish sentiment strengthened, with US crude and international benchmark Brent notching their worst weeks since October 2023.
Futures briefly regained floor on Monday as Tropical Storm Francine threatened oil and gasoline manufacturing and refining operations alongside the Gulf Coast.
