Oil Prices Close with Sharp Losses; Brent Falls Below $70

Brent dropped 3.69%, closing at $69.19. During the session, it hit a low of $68.68.

Ignacio Teson•Tuesday, September 10, 2024•1 min read

The sell-off accelerated following the release of OPEC’s monthly report, which revised down its consumption forecasts for 2024 and 2025.

The price of Brent crude from the North Sea fell below $70 per barrel on Tuesday, marking its lowest point since December 2021, driven by reduced global demand for oil.

Brent dropped 3.69%, closing at $69.19. During the session, it hit a low of $68.68.

U.S. West Texas Intermediate (WTI) crude for October fell even further, losing 4.31% to settle at $65.75, after reaching a 16-month low.

The sell-off accelerated with the publication of OPEC’s monthly report, which revised down its crude consumption forecasts for 2024 and 2025.

The cartel now expects daily crude consumption to reach 104.2 million barrels in 2024 and 105.9 million barrels in 2025, compared to previous forecasts of 104.3 and 106.1 million barrels, respectively.

UKOIL

“China’s consumption is a concern,” OPEC noted in the report, warning that the government’s stimulus measures “may be insufficient to significantly boost consumption.”

At the same time, the U.S. Energy Information Administration (EIA) also lowered its forecasts for both 2024 and 2025.

The EIA also pointed to China, where “new data shows declining demand for diesel, jet fuel, and a slowdown in refinery activity.”

“We can use OPEC’s report as an excuse, but this is a continuation of a trend that began several weeks ago,” said analysts. “The market is adjusting its forecasts based on weak demand.”

Since mid-July, Brent has lost nearly 19%.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.