On Wednesday afternoon, the price of a barrel of Brent oil fell to 79.8 dollars, later it rose slightly to 80.2 dollars. This is the lowest price since July 21, making oil the cheapest in more than three months.
An almost identical decline was also shown by the American WTI light oil, which weakened by one percent to a price of 76.6 dollars (1,770 CZK) per barrel. Here, too, it is the lowest value since July 21.
“The market is clearly less concerned about potential supply disruptions in the Middle East and is instead focused on easing in the balance (between supply and demand),” ING analysts Warren Patterson and Ewa Manthey said in a note to clients.
As Reuters pointed out, oil production in the United States will rise less than originally expected this year, while demand will fall, the US Energy Information Administration (EIA) said on Tuesday.
According to EIA estimates, total oil consumption in the US will drop by 300,000 barrels per day this year. At the same time, the previous forecast counted on the opposite scenario in the form of an increase of 100,000 barrels per day. As a result, U.S. oil inventories are rising, rising by nearly 12 million barrels last week, Reuters reported, citing data from the American Petroleum Institute.
Market concerns about weaker global demand are also fueled by the trade balance of China, the world’s largest oil importer. New data pointed to lower-than-expected exports and higher imports, underscoring the problems of the country’s economy.