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Oil prices drop 4% to 6-month lows on global demand fearsThe plunge in oil prices was further influenced by mounting concerns over China's economic well-being. Moody's decision to downgrade China's A1 rating outlook from stable to negative |
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In a significant downturn, oil prices experienced a nearly 4% drop on Wednesday, 6 December 2023 marking their lowest settlements since June. The decline was fuelled by growing apprehensions about global demand, exacerbated by a substantial increase in US gasoline inventories. According to the Energy Information Administration (EIA), gasoline stocks surged by 5.4 million barrels in the past week, exceeding expectations.
The plunge in oil prices was further influenced by mounting concerns over China's economic well-being. Moody's decision to downgrade China's A1 rating outlook from stable to negative added to the unease in the market, as investors pondered the potential impact on future fuel consumption.
Brent crude futures settled down $2.90/barrel or 3.8%, close at $74.30/barrel.
WTI crude futures fell by $2.94/barrel or 4.1%, close to $69.38/barrel.
