Oil prices continue slipping amid global economic uncertainty
Business
Previous session saw WTI sliding for fourth consecutive day for the first time since May
NEW YORK/LONDON (Reuters/Web Desk) - Oil prices were down on Wednesday after suffering losses during the previous session as markets continue to doubt the impact of OPEC+ cuts and take cues from a worsening demand outlook in China.
Brent crude futures fell 26 cents, or 0.34 per cent, to $76.94 a barrel by 3:05pm [Pakistan Standard Time]. US WTI crude futures were down 30 cents, or 0.41pc, at $72.02 a barrel.
Both benchmarks closed at their lowest level since July 6 in the previous session, with WTI seeing four consecutive days of declines.
Earlier on Tuesday, oil prices fell to a near five-month low on a stronger US dollar and demand concerns, putting the market down for a fourth day in a row on doubts over OPEC+ announced voluntary supply cuts last week.
Brent crude oil futures fell 83 cents, or 1.1pc, to settle at $77.20 a barrel, while WTI ended 72 cents, or 1.0pc, lower at $72.32.
That was the lowest close for both crude benchmarks since July 6. For WTI, it was the first time since May that prices fell for four days in a row.
Voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024 by the Organization of the Petroleum Exporting Countries and allies such as Russia (OPEC+) have failed to support market sentiment, amid scepticism over whether the cuts would be implemented in full.
The cuts include an extension of Saudi and Russian voluntary cuts of 1.3 million bpd.
Comments from Russian deputy prime minister Alexander Novak that OPEC+ was "ready to take additional actions to eliminate speculation and volatility" did not significantly influence market sentiment.
Russian President Vladimir Putin is set to visit key OPEC members Saudi Arabia and the United Arab Emirates on Wednesday for talks that are expected to include oil market cooperation.
Bearish sentiment has also been driven by concerns over China's economic health.
On Tuesday, rating agency Moody's lowered the outlook on China's A1 rating to negative from stable, citing "increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector".
China will release preliminary trade data, including crude oil import data, on Thursday.
In the US, crude oil and fuel inventories rose in the week to Dec. 1, according to market sources citing American Petroleum Institute figures on Tuesday.
Crude stocks increased by 594,000 barrels, the sources said on condition of anonymity. Gasoline stockpiles gained by 2.8 million barrels, while distillate inventories rose nearly 1.9 million barrels.
US government data on inventories is due on Wednesday.
