Crude oil dropped as demand concerns outweighed supply cuts from OPEC+
However, investors were more concerned about the demand outlook as China’s manufacturing activities registered the fifth straight month of contractionary.
Oil prices declined on Monday, 4 March 2024 as macroeconomic weakness was more apparent than the widely anticipated extension of supply restrictions by OPEC+, particularly in China, the world's largest oil importer.
OPEC+ has decided to continue their voluntary oil output restrictions of 2.2 million barrels per day (bpd) into the second quarter to combat the sluggish global economy and rising supply outside the organization. However, investors were more concerned about the demand outlook as China’s manufacturing activities registered the fifth straight month of contractionary.
Brent futures declined by 75 cents to settle at $82.80/barrel.
WTI dropped $1.24 or 1.5% to settle at $78.74/barrel.