Oil prices fall on demand concerns for fifth day

• Oil prices extended their losing streak to a fifth day on weak demand expectations and speculation that OPEC+ production cuts could be eased.
• China’s economic slowdown and weak oil import data are major contributors to demand concerns.
• Geopolitical risks in the Middle East and potential weather-related disruptions provide some support for oil prices.

Crude oil prices extended a losing streak into a fifth day earlier as expectations of weak demand weighed on benchmarks.

Brent crude fell below $76 per barrel and West Texas Intermediate it was below $72 earlier in the day despite Wednesday’s EIA report that saw crude and fuel stockpiles draw.

There was also another reason for the fall in prices, and that was the apparent belief among oil traders that OPEC will begin to ease some of the production cuts – despite the fall in prices. OPEC has made it quite clear that it will only reduce production cuts if prices are right.

“Downward pressure on prices makes it increasingly likely that OPEC+ will have to abandon plans to gradually increase supply in October. Failure to do so is likely to put further pressure on prices,” ING analysts said in a note.

“Weak global demand and the potential threat of tapering off OPEC+ production cuts is weighing on oil,” Phillip Nova analyst Priyanka Sachdeva said. said Reuters.

In a report today, Bloomberg RECORDED that the oil sell-off triggered by the latest oil demand crisis has been exacerbated by automated trading that follows technical trends to make trading decisions.

Also quote Citi analysts sounded a modestly bullish note as they said “the possibility of weather-related disruptions throughout the hurricane season, as well as geopolitical risks in North Africa and the Middle East, could present a buying opportunity around $75 per barrel for a replica. back to $80.”

Demand concerns continue to focus solely on China, where various economic indicators as well as oil import and fuel export data have suggested a slowdown in demand growth for the world’s most traded commodity.

On the other hand, the geopolitical premium on prices also remains in place to counter demand pessimism as the chances of an effective ceasefire between Israel and Hamas remain remote.

By Irina Slav for Oilprice.com

More top reads from Oilprice.com