WTI Daily Crude
The price of a barrel of WTI crude oil is now at $65.
It fell 4% on the day, or $2.75, to $65.96, its worst level since May 2023. It has traded as low here on a handful of days in 2023, but if it finishes at this level, it will be its worst close since December 2021.
It’s certainly not a good day for OPEC. Earlier today, the group cut its 2024 demand growth forecast to 2.03 million barrels per day (bpd) from 2.11 million bpd in last month’s report, largely on lower growth in Chinese demand. For next year, the group expects a further decline of 1.74 million bpd from 1.78 million bpd previously.
These figures are about one million barrels per day lower than the US Energy Information Administration’s forecast.
Initially, the market shrugged off OPEC’s forecast, but when combined with weak Chinese import data, it paints a picture of a slowing global economy.
I think there is a bit of a capitulation here for oil traders with crude down 6 of the last 7 days, but it is not clear what could turn things around.