• July 22, 2024

Oil Price Reduces In The Middle Of Fears Over Oil Demand

Oil prices have fallen down to the lowest level considering the last 8 Months among fears about a reduction in demand. International benchmark Brent crude was reduced to $65.11 (£50.24) per barrel that is a reduction by almost 7%; it is the lowest level since March.

The U.S. oil WTI (West Texas Intermediate) dropped to $55.69 that is a reduction by over 7%, which is the lowest level since November of the last year. The recent reduction in oil prices came after the oil alliance OPEC (Organization of the Petroleum Exporting Countries) decreased its calculation for oil demand worldwide for the next year. The OPEC now anticipates world demand to increase to 1.29 million barrels per day for the next year, which is nearly 70,000 barrels per day and lower than the last month’s forecast. Khalid al-Falih—Saudi’s Energy Minister—recently stated that the OPEC had settled to the fact that there is a need to cut down oil production for the next year in terms of preventing oversupply. Saudi Arabia is the biggest member of the OPEC league of the Middle East and African oil manufacturers. Capital analysts asserted that it was obvious that “fears over surplus supply in the oil market have started to develop.”

Speaking of oil prices, recently, Asian stock markets faced a huge influence due to drop down of oil prices. Asian stocks were trading in a diverse territory as oil prices slipped in advance to negative territory. Hang Seng index of Hong Kong was decreased by 0.13%. The mainland China markets, which are closely observed by financiers due to the ongoing U.S.-China trade spat, were in a diverse territory with the Shenzhen composite earning 0.336%, whereas, the Shanghai composite moderately lowered. From the Reuters poll, China’s industrial production for last month was 5.9% higher than a year ago and higher than expectations.

Leave a Reply

Your email address will not be published. Required fields are marked *