News Digest:

On Tuesday, global oil benchmark Brent crude futures fell to their lowest level since December 2021, closing at $69.19 a barrel, a decline of $2.65 or 3.69%. This drop came after OPEC+ downgraded its demand forecast for this year and 2025, overshadowing supply concerns related to Tropical Storm Francine.

U.S. West Texas Intermediate (WTI) crude also saw a significant decline, settling at $65.75 a barrel, down $2.96 or 4.31%. Both benchmarks experienced a decrease of more than $3 during the trading session, reversing the gains made on Monday when each had risen by about 1%. WTI futures fell more than 5% on Tuesday, reaching their lowest point since May 2023.

In its monthly report, OPEC revised its forecast for global oil demand in 2024 to an increase of 2.03 million barrels per day (bpd), down from the previous estimate of 2.11 million bpd. This forecast has remained unchanged since it was first issued in July 2023. Additionally, OPEC marginally lowered its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd. The downward revisions in demand forecasts and growing concerns about potential oversupply contributed to the decline in oil prices.

End Notes

Source: https://www.reuters.com/markets/commodities/oil-steady-supply-disruptions-storm-francine-offset-weak-demand-2024-09-10/