Oil prices drop 3.5% due to OPEC production cuts and demand concerns

Reported 6 months ago

Oil prices fell by as much as 3.5% following OPEC's decision to unwind voluntary cuts sooner than expected, raising demand worries for 2025. West Texas Intermediate (CL=F) settled at $74.27 per barrel while Brent (BZ=F) closed at $78.36. The move was accompanied by technical selling and limited interest in buying due to soft demand. Saudi Arabia's oil alliance extended 3.6 million bpd in cuts until the end of 2025, with a phased unwinding of an additional 2.2 million bpd expected to begin in October. Analysts predict a demand slowdown in 2025, with JPMorgan viewing the decision as 'market neutral' for oil prices in 2024.

Source: YAHOO

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