Global oil prices slide to seven-month low over reduced demand

MANILA: Oil prices fell to seven-month lows yesterday as fear of a global economic recession and lockdowns in China, the world’s top oil consumer, impacted market sentiment.

The price of barrels of international benchmark Brent crude was $91.77 per barrel, 1.14% lower versus the previous trading session’s closing price of $92.83 per barrel.

At the same time, American benchmark West Texas Intermediate (WTI) traded at $85.84 per barrel, down 1.19% from the previous session’s closing price of $86.88 per barrel.

Prices dropped to pre-Russian-Ukraine war lows, with Brent falling to $91.20 in recent trade amid concerns over weak demand following the lockdowns implemented in China on Saturday on an estimated 65 million people across 33 cities, according to data gathered by Caixin.

In keeping with its “zero-Covid” policy, which aims to curb outbreaks as soon as they hit, China imposed new restrictions in certain areas of Guiyang, the capital of the province of Guizhoum, on Tuesday.

Investors have already taken measure of supply concerns after the Organization of Petroleum Exporting Countries (OPEC) and its affiliates, known as OPEC+, settled on a “symbolic” production cut of around 100,000 barrels per day in October.

Photo from Caltex

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