10/09/2024 – 19:32
Oil fell more than 4% on Tuesday, 10, after a report from the Organization of the Petroleum Exporting Countries (OPEC) indicated a slowdown in demand from some countries, especially China.
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On the New York Mercantile Exchange (Nymex), WTI oil for October closed down 4.31% (US$ 2.96), at US$ 65.75 a barrel – the lowest level since March 2023 -, while Brent for November, traded on the Intercontinental Exchange (ICE), had losses of 3.69% (US$ 2.65), at US$ 69.19 a barrel, reaching the lowest level since December 2021.
StoneX analyst Bruno Cordeiro justifies the drop in commodity prices as a reflection of market expectations about global demand. According to him, the OPEC report touched on a sensitive point in the markets, which is Chinese demand, which was already in focus in previous trading sessions.
According to the institution, the market is more pessimistic about oil consumption also due to an economic slowdown and the electrification of fleets.
“The current symptom is pessimism generated by this perspective of lower consumption not only in the short term, but also in the long term,” he explains.
For Julius Baer, the difficult moment for oil prices is expected to continue, which has made them reduce expectations for oil.
“Demand is partially stagnant, production is growing in the Americas and the oil market will likely enter into a supply surplus next year,” it mentions in a report.
On Tuesday, the United States Department of Energy (DoE) also published its Short-Term Energy Outlook (Steo) report for September, and reduced its forecast for the average price of a barrel of Brent and WTI.
*With information from Dow Jones Newswires
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