Oil retreats as markets refocus on demand concerns

Economy

13-08-2024, 09:29

+A -A

INA-sources

Oil prices edged lower on Tuesday, breaking a five-day streak of gains, as markets refocused on concerns about demand after OPEC on Monday cut its forecast for demand growth in 2024 due to softer expectations in China.

Global benchmark Brent crude futures fell 78 cents, or 0.95%, to $81.52 a barrel at 0330 GMT. U.S. West Texas Intermediate crude futures slipped to $79.33 a barrel, down 73 cents, or 0.91%.

Brent had gained more than 3% on Monday, while U.S. crude futures had risen more than 4%.

The Organization of the Petroleum Exporting Countries' (OPEC) global demand forecast reduction for 2024 highlighted the dilemma faced by the wider OPEC+ group in raising production from October.

The cut to OPEC's 2024 forecast was the first since it was made in July 2023, and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption and as a crisis in the property sector hampers the world's second-largest economy.

Source: Reuters