Brent crude fall below USD80 per barrel for 1st time since July
Date
11/9/2023 2:42:25 AM
(MENAFN) In a notable market development, the price of brent crude oil experienced a significant drop on Wednesday, falling below USD80 per barrel. The global benchmark Brent crude briefly declined by more than 2 percent, touching a low of USD79.80 before recovering to slightly above USD80 per barrel. Simultaneously, the US standard contract, West Texas Intermediate, reached USD75.44 per barrel, marking its lowest level since July.
The decline in oil prices is attributed to various factors, with weaker economic expectations being a key driver. OANDA market analyst Craig Erlam pointed out that "Oil prices reached their lowest levels since July today in light of the impact of weaker economic expectations." This drop follows a 4 percent decrease in crude oil prices on the previous day, triggered by news that China's exports had fallen at a faster rate than anticipated in October. This raised concerns about the level of energy consumption in the world's largest oil importer.
Erlam further highlighted the evolving focus in the energy markets, which is shifting from concerns about supply shortages to the growing apprehension regarding weak demand. Central banks' decisions to maintain high interest rates are also contributing to this situation. The combination of these factors underscores the delicate balance in the oil market, where supply and demand dynamics are constantly in flux.
Overall, these developments serve as a reminder of the intricacies that influence global oil prices and the challenges faced by energy markets in responding to changing economic conditions and demand patterns.
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