Energy
Wednesday, November 8th, 2023 3:33 pm EDT
Key Points
- U.S. crude oil prices dropped below $78 a barrel, reaching their lowest point since July. West Texas Intermediate (WTI) fell by 4.3% to settle at $77.37 per barrel, while Brent crude fell by 4.2% to settle at $81.61 per barrel.
- The decline in oil prices is attributed to weak global economic data, particularly from China. China’s exports experienced a 6.4% drop in October, worse than expected, indicating slowing global demand. This decline has been ongoing for six consecutive months.
- Despite the recent oil output cuts announced by Saudi Arabia and Russia, which initially boosted oil prices, concerns about the Israel-Hamas conflict escalating into a broader regional conflict and disrupting oil supply have eased. This, along with China’s economic data, has contributed to the decline in oil prices.
This article reports that U.S. crude oil prices dropped to their lowest levels since July, with West Texas Intermediate (WTI) falling 4.3% to $77.37 a barrel and Brent falling 4.2% to $81.61. The decline is attributed to weak global economic data, particularly from China, where a 6.4% drop in exports was reported in October, worse than expected. This data suggests slowing global demand, and China’s exports have fallen for six consecutive months. Additionally, Minneapolis Federal Reserve President Neel Kashkari expressed lowered expectations of a U.S. central bank rate cut. Despite oil output cuts announced by Saudi Arabia and Russia, prices have fallen since mid-October, as concerns about the Israel-Hamas conflict escalating into a broader regional conflict have eased.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/07/us-crude-oil-prices-fall-below-78-a-barrel-to-their-lowest-since-july.html
