New York .- Oil prices for Texas (WTI) closed the Tuesday session with a 4.31% drop, ending at $65.75 per barrel (59.63 euros) after the Organization of Petroleum Exporting Countries (OPEC) decision to reduce its demand expectations for 2024 and 2025.
At the close of the market on the New York Mercantile Exchange (Nymex), WTI for October delivery decreased by $2.96 compared to the previous day.
The Organization of Petroleum Exporting Countries (OPEC) lowered its estimates for global oil demand growth for 2024 and 2025 to 104.24 million barrels per day (mbd) and 105.99 mbd, respectively.
This adjustment is due to the current low oil prices, prompting OPEC and its allies (OPEC+) to postpone the planned production increase scheduled for October at least until early December.
Earlier, in August, OPEC had already reduced its demand forecasts due to a reduction in consumption by China, the world’s largest crude oil importer.
Markets are concerned about a possible decline in oil demand from China due to the increase in electric vehicle sales, which has put downward pressure on crude oil prices in recent months.
Texas experienced a 1.5% increase yesterday due to concerns that the Francine storm could affect crude oil supply, however, this concern has dissipated today. To date, prices have registered a 7.29% decline.
Meanwhile, Brent crude fell below $70 in the London futures market for the first time since December 2021, due to fears of a decline in demand amid a possible global economic slowdown.
In other markets, October contracts for natural gas increased to $2.23 per thousand cubic feet, while gasoline contracts for the same date decreased to $1.87 per gallon.
image credits: Deultimominuto.net
