Oil extended decline amid global demand concerns and mixed geopolitical signals
China, the world's largest importer of oil, reported its slowest economic growth since early 2023, exacerbating concerns about energy demand in the world’s second-largest economy. The slowdown, alongside a staggering 42% surge in electric vehicle (EV) sales in August
Global oil prices continued to fall on Friday, October 18, 2024, capping off a turbulent week marked by deepening concerns over China's economic slowdown and fluctuating geopolitical risks in the Middle East.
Brent crude closed at $73.06/barrel, down $1.39 or 1.87%.
WTI settled at $69.22/barrel, a drop of $1.45 or 2.05%.
For the week, Brent plunged over 7%, while WTI saw an even sharper decline of nearly 8%, marking their largest weekly losses since early September.
China, the world's largest importer of oil, reported its slowest economic growth since early 2023, exacerbating concerns about energy demand in the world’s second-largest economy. The slowdown, alongside a staggering 42% surge in electric vehicle (EV) sales in August, raised fears of structural shifts in the nation's fuel consumption patterns.
Meanwhile, in the Middle East, a cooling of geopolitical tensions further weighed on prices. Fading fears of attacks on Iran's energy infrastructure helped ease the risk premium that had been supporting oil prices earlier in the year.
Written by: Muhammad Hafiz