The price of crude oil futures are settling at $77.37. That’s down $3.45 or -4.27%. The decline is the largest sense October 4 when the price fell -5.57%.
The price fell below its 200-day moving average is $78.14 and traded to the lowest level since July 24.
The price closed at $80.42 at the end of 2022. The high price for the year reached $94.99 on September 28 while the low price on May 5 reached $63.61.
Initially, weak Chinese activity data negatively influenced market sentiment.
The stronger US Dollar added to the downward pressure on oil prices.
In Europe, soft German industrial production data hurt the demand side.
The U.S. Energy Information Administration (EIA) revised its 2023 world oil demand growth forecast, reducing it by 300,000 barrels per day (BPD) to a year-on-year increase of 1.46 million BPD. However, the EIA did increase its 2024 forecast by 80,000 BPD to a year-on-year increase of 1.40 million BPD.
Despite the declines,
Saudi Aramco’s CFO remained optimistic about global oil demand recovery, especially in China and India.