Fears Of China And Us Shrinking Demand Cause Oil Prices To Fall

After rising on Friday, oil prices fell on Monday as fears of shrinking demand in the United States and China negatively affected market sentiment.

Brent crude futures for January fell 71 cents, or 0.87 percent, to $80.72 a barrel by 0400 GMT. West Texas Intermediate crude futures for December fell 68 cents, or 0.88 percent, to $76.49 per barrel, reports Al-Rai daily.

The two crude oils fell below the 100-day average price of $86.61 per barrel for West Texas Intermediate crude and $82.31 per barrel for Brent crude.

Prices rose by about two percent on Friday after Iraq expressed its support for the production cuts implemented by the OPEC+ group, but they fell by nearly four percent during the week, recording losses for the third week in a row and for the first time since May.

The US Energy Information Administration said last week that crude production in the United States this year will increase slightly less than expected, while demand will decline.

Saudi Arabia and Russia, two major oil exporters, confirmed last week that they would continue voluntary oil production cuts until the end of the year, as concerns related to demand and economic growth continue to cast a shadow over crude markets.

On November 26, OPEC+, which includes OPEC and independent producers including Russia, will meet.

Comments Post Comment

Leave a Comment

Submit