Concerns about demand counteract the geopolitical price support as oil settles lower
As demand concerns countered persistent Middle Eastern geopolitical issues, crude prices were scarcely in subdued trade during the Presidents' Day holiday in the USA.
As demand concerns countered persistent Middle Eastern geopolitical issues, crude prices were scarcely in subdued trade during the Presidents' Day holiday in the USA. Despite the crisis in the Middle East, investors in one of the world's largest oil-producing regions appear to be more concerned about slowing global demand.
In a report by the International Energy Agency (IEA) last week, IEA lowered the prediction for growth in oil consumption by 2024 to a staggering amount of approximately one million barrels a day; less than the producer group OPEC’s outlook.
Brent futures fell $1.22 or 1.5% to settle at $82.34/barrel.
WTI dropped $1.01 or 1.3% to settle at $78.18/barrel.