Oil prices plummeted to a five-month low amid growing market outlook concerns

Oil prices nosedived to a near five-month low on Tuesday, 5 December 2023 marking a four-day decline fuelled by a robust US dollar, demand uncertainties, and scepticism surrounding OPEC+ announced supply cuts. Analysts question the effectiveness of these cuts, while Russian officials consider strengthening them. Adding to the bearish sentiment, the American Petroleum Institute (API) reported a surprising increase in US crude and fuel stockpiles. 

Meanwhile, Moody's recent downgrade of China's economic outlook to negative, along with ongoing discussions about a formal phase-out of fossil fuels at COP28, has added to market anxiety. The consecutive four-day decline in oil prices, the first such drop for WTI since May, indicates growing concerns among traders.

Brent crude oil futures fell 83 cents or 1.1%, to settle at $77.20/barrel.

WTI ended 72 cents or 1.0%, lower at $72.32/barrel.