Market News
U.S. crude oil sheds gains, falls more than 1% to trade below $68 per barrel as OPEC cuts forecast -cnbc
Key Points
- OPEC cut its demand growth forecast for the second time in as many months.
- Softening demand expectations in China are weighing on the oil market.
- Oil prices rose in the previous session as a storm threatens to disrupt supplies on the Gulf Coast.
U.S. crude oil futures on Tuesday fell more than 1%, shedding gains from the previous session as OPEC lowered its demand forecast for the second time in two months.
OPEC now expects demand to grow by about 2 million barrels per day in 2024, some 80,000 bpd slower than its previous forecast. The group of oil producers sees demand growth of 1.7 million bpd next year, some 40,000 bpd lower than originally anticipated.
OPEC had cut its demand outlook in August due to softening consumption in China, the world’s largest crude importer.
Worries about softening demand in China as electric vehicle sales surge has loomed over the oil market for months now. OPEC+ is also expected to increase production in December, with Morgan Stanley and other market analysts forecasting a surplus for 2025.
Oil prices sold off last week as bearish sentiment takes hold, with U.S. crude and global benchmark Brent posting their worst weeks since October 2023.
Futures briefly recovered some lost ground on Monday as Tropical Storm Francine threatens oil and gas production as well as refining operations on the Gulf Coast.
