Oil prices fell as demand concerns outweighed possible OPEC supply restoration delay
The OPEC+ alliance, which had planned to increase output by 180,000 barrels per day next month, is now reconsidering its strategy amid the deteriorating market outlook.
Oil prices plunged to their lowest levels in over a year on Wednesday, September 4, as persistent concerns over weakening demand overshadowed the possibility of OPEC+ delaying planned supply increases.
Brent dropped by $1.05, or 1.42%, settling at $72.70/barrel.
WTI declined by $1.14, or 1.62%, to close at $69.20/barrel.
The OPEC+ alliance, which had planned to increase output by 180,000 barrels per day next month, is now reconsidering its strategy amid the deteriorating market outlook. The group had aimed to gradually restore production cuts initiated in 2022 to stabilize prices, but current conditions are forcing a re-evaluation of these plans.
Weighing on market sentiment is the weak economic data from China and the United States — the world’s two largest oil consumers — which has intensified fears of a demand slowdown, raising the specter of a potential oil surplus in the year ahead.
Written by: Rochelle Nguyen