U.S. crude oil futures fell more than 2% on Monday after OPEC cut its 2024 demand forecast for the third time in a row.
OPEC now forecasts demand growth of 1.9 million barrels per day in 2024, up from 2 million bpd in its previous forecast, according to a report. report released Monday. The group expects demand to grow by 1.6 million b/d in 2025, compared to 1.7 million b/d previously.
Here are Monday’s closing energy prices:
- West Texas Intermediate November contract: $73.83 per barrel, down $1.73 or 2.29%. Since the start of the year, U.S. crude oil has gained about 3%.
- Brent December contract: $77.46 per barrel, down $1.58 or 2%. Since the start of the year, the global benchmark has risen almost 1%.
- Essence RBOB November contract: $2.1086 per gallon, down 2%. Since the start of the year, the essence has changed little.
- Natural gas November contract: $2.494 per thousand cubic feet, down 5.24%. Since the start of the year, gas has fallen almost 1%.
The Chinese Minister of Funds also disappointed the market during a weekend press conference. Traders are counting on more robust stimulus measures in China to boost the world’s second-largest economy. Weak demand in China, the world’s largest importer of crude, has weighed on the market for months.
“China’s monetary stimulus failed to provide stimulus and the Finance Ministry’s pledge to borrow more over the weekend was rich in clichés and soundbites but short on reassuring and compelling details,” said Tamas Varga, analyst at oil broker PVM, in a comment to his customers.
The market, meanwhile, continues to monitor the situation in the Middle East, in anticipation of a retaliatory strike by Israel against Iran. U.S. officials told NBC Information that Israel has reduced the targets it plans to strike. These include military targets and energy infrastructure, officials told NBC.
