Oil slips as IEA, OPEC cut near-term crude demand outlook
BNN Bloomberg
Oil dropped as demand forecasts show consumption falling in the near term, taking some of the edge off of concerns about tightening supplies heading into winter.
West Texas Intermediate futures fell 1.2 per cent to trade below US$85 a barrel Tuesday. The International Energy Agency said global oil consumption is poised to contract by 240,000 barrels a day this quarter compared with a year ago. Earlier this week, OPEC cut its fourth-quarter demand forecast.
Consumption concerns extended deep into market guages, with the timespread for U.S. crude falling to its weakest level in seven weeks.
“Chinese COVID containment is on most traders’ radar this morning along with OPEC’s lower demand forecast,” said Dennis Kissler, senior vice president at Bok Financial Securities. He warns of further liquidation until China makes a firmer decision on it’s COVID-19 policies.
