WASHINGTON (dpa-AFX) - Oil prices fell sharply on Tuesday as concerns about the outlook for global demand outweighed geopolitical tensions in the Middle East and likely disruptions in supply.
After OPEC lowered its demand forecast, citing weak Chinese economy, the International Energy Agency (IEA) has cut its estimates for global oil demand for 2025.
West Teas Intermediate Crude oil futures for September ended down $1.71 or about 2.1% at $78.35 a barrel, snapping a five-day winning streak.
Brent crude futures dropped to $80.69 a barrel, down $1.61 or nearly 2%.
According to the OPEC report, world oil demand is expected to rise by 2.11 million barrels per day in 2024, versus 2.25 million barrels per day anticipated in the previous month's report.
The IEA kept its 2024 global oil demand growth forecast unchanged but trimmed its 2025 estimate, citing the impact of a weakened Chinese economy on consumption.
Markets now await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API report is due later today, while the EIA data is due Wednesday morning.
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