Oil Prices Sink on US Weather and China Concerns

11 Nov 2024 , 09:23 AM

As the risk of a U.S. storm-related supply disruption subsided and after China’s stimulus plan let down investors hoping to boost demand in the world’s second-largest oil consumer, oil prices continued to fall on Monday.

U.S. West Texas Intermediate crude prices were down 25 cents, or 0.4%, to $70.13 a barrel, while Brent crude futures fell 19 cents, or 0.3%, to $73.68 a barrel.

Last Friday, both benchmarks had a decline of over 2%.

After worries about supply disruptions caused by hurricane Rafael in the U.S. Gulf of Mexico abated, oil prices have also decreased.

According to the offshore energy regulator, 16% of natural gas production and more than 25% of U.S. Gulf of Mexico oil production were down on Sunday.

Market expectations were not met by Beijing’s stimulus plan, which was unveiled at the National People’s Congress (NPC) standing committee meeting on Friday.

Since China’s economic growth has slowed, the usage of petrol has decreased due to the quick rise of electric vehicles, and liquefied natural gas has supplanted diesel as a truck fuel, the country’s oil consumption, which has long been the driving force behind global demand growth, has hardly increased in 2024.

For feedback and suggestions, write to us at [e-mail]