The global oil market experienced a downturn on Monday, October 14, 2024.
Crude oil futures closed lower due to disappointing inflation data from China and uncertainty surrounding Beijing’s economic stimulus plans.The Organization of Petroleum Exporting Countries (OPEC) reduced its oil demand growth forecast for the remainder of 2024 and 2025.This news slightly eased the losses, but concerns about China’s economic uncertainty continued to weigh on the commodity.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for November delivery fell by 2.28%, or $1.73.In addition, the price settled at $73.83 per barrel.
Brent crude for December delivery, traded on the Intercontinental Exchange, dropped by 2%, or $1.58.
It closed at $77.46 per barrel.China’s Finance Minister, Lan Foan, made a statement over the weekend about Beijing’s plans.
He mentioned that the government is exploring additional ways to boost the world’s second-largest economy.Oil Prices Dip as China’s Stimulus Plans Fall Short and Demand Concerns Linger.
(Photo Internet reproduction)However, Lan Foan did not provide specifics about a comprehensive plan.
This lack of clarity sparked worries about oil demand in China.The news from China overshadowed concerns about potential retaliation by Israel against Iran.
These tensions stem from missile attacks earlier in the month.OPEC’s Oil Demand ForecastOPEC released a report on Monday, cutting its forecast for global oil demand growth this year by 106,000 barrels per day.
This marks the third consecutive month OPEC has lowered its projection.Citigroup analysts shared their insights on the oil market in a report released Monday.
They suggested that crude oil prices could reach triple digits if supplies are disrupted by the conflict in the Middle East.This prediction comes despite the current weak market fundamentals.
The analysts raised their estimate for Brent crude in the most optimistic scenario.They now project a price of $120 per barrel, up from $80, for the fourth quarter of 2024 and the first quarter of 2025.
The probability of this outcome has been increased to 20% from the previous 10%.These developments highlight the complex interplay of global events and economic factors shaping the oil market.
Investors and industry observers continue to monitor the situation closely as geopolitical tensions and economic uncertainties persist.