Global benchmark Brent oil prices on Tuesday fell below $70 per barrel for the first time since December 2021, as OPEC lowered its demand forecast for the second time in two months.
Brent hit a low of $69.08 per barrel, the lowest since Dec. 2, 2021, while U.S. crude oil traded down to $65.82 per barrel, the lowest since since May 4, 2023.
Here are Tuesday’s energy prices:
- West Texas Intermediate October contract: $66.34 per barrel, down $2.38, or 3.5%. Year to date, U.S. crude oil has declined 7.4%.
- Brent November contract: $69.70 per barrel, down $2.14, or 3%. Year to date, the global benchmark has pulled back 9.6%.
- RBOB Gasoline October contract: $1.87 per gallon, down 4 cents, or 2.1%. Year to date, gasoline has fallen 10.7%.
- Natural Gas October contract: $2.22 per thousand cubic feet, up 5 cents, or 2.4%. Year to date, gas has shed 11%.
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.
