Oil prices fell about 3% to their lowest since late August on Tuesday, as demand concerns arose from mixed Chinese data and waning investor enthusiasm on interest rate cuts.
Brent crude futures fell $2.53, or 3%, to $82.65 a barrel as of 1634 GMT, while US West Texas Intermediate crude fell to $78.35 a barrel, down $2.47, or 3.1%.
Both contracts hit their lowest levels since August 25, and Brent futures were set to close below $84 a barrel for the first time since Middle East conflict erupted on October 7.
The premium on front-month loading Brent contracts over ones loading in six months was also at a 2-1/2-month low, indicating market participants are less concerned with current supply deficits.
“Traders will remain on high alert for signs of a wider conflict emerging in the (Middle East) region that could disrupt supplies, but it seems those fears are subsiding,” Oanda analyst Craig Erlam said.
On the demand side, China’s crude oil imports in October showed robust growth both year on year and month on month, but its total exports contracted at a quicker pace than expected.
Published in The Express Tribune, November 8th, 2023.
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