Oil prices drop 2 percent amid investor concerns about weak Chinese demand
Date
11/17/2024 2:38:06 AM
(MENAFN) Oil prices declined by 2 percent at the end of trading on Friday, recording significant weekly losses amid investor concerns about weak Chinese demand and the potential slowdown in the pace of interest rate cuts by the U.S. Federal Reserve. brent crude futures dropped by USD1.52, or 2.09 percent, to settle at USD71.04 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by USD1.68, or 2.45 percent, to USD67.02.
For the week, oil prices experienced notable declines, with Brent crude futures dropping by 4 percent and WTI crude futures falling by 5 percent. This marks a continuation of the recent downturn in prices, driven by a combination of factors, including concerns over demand and market conditions.
Data from China's National Bureau of Statistics revealed that crude refining activity at Chinese refineries fell by 4.6 percent in October compared to the same period last year. This marks the seventh consecutive month of year-on-year decline, attributed to plant closures and reduced operating rates at smaller independent refineries.
Looking ahead, the International Energy Agency (IEA) forecasts that global oil supply will surpass demand in 2025, even if OPEC+ cuts, which include OPEC nations and allies like Russia, continue. The IEA's projection reflects growing production from the U.S. and other non-OPEC+ producers, which is expected to outpace slowing demand. The agency also raised its 2024 demand growth forecast by 60,000 barrels per day to 920,000 barrels per day, while leaving its 2025 demand growth forecast unchanged at 990,000 barrels per day.
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