International Oil Prices Crash With WTI Below $70 Amid Demand Issues

Oil prices fell on Sunday with Brent crude falling below $72 amid sluggish demand and reports that Libya is close to agreeing to resuming crude oil exports. Crude oil futures were down in mid-morning Asian trade on September 8 due to losses after Brent markers dropped below $75 per barrel this week on a wave of sluggish developments on the demand side. At the time of filing, WTI crude was trading at $67.67, down 2.14 percent or $1.48 on a day-on-day basis. Meanwhile, Brent crude was trading at $71.06, down 2.24 percent or $1.63 at 13:17 PKT. Many commentators on X have opined that Brent crude is unlikely to go higher than $90 this calendar year unless Israel’s genocide against Palestine escalates to involving key oil producers. Meanwhile, OPEC is expected to extend production cuts through the rest of the year, with possible easing in early 2025, keeping crude prices within a range of $70-$90 per barrel. Elsewhere, concerns over weakened Chinese demand and potential resolutions in Libya’s oil export disputes have further hurt oil prices. Despite the drop in US crude stockpiles by 6.9 million barrels last week, Brent is currently at its lowest point since June 2023. Bank of America has reduced its Brent price forecast for the second half of 2024 from $90 to $75 per barrel. Analysts expect continued volatility in oil prices due to the global economic slowdown, particularly sluggish demand from China. However, larger-than-expected US inventory drawdowns and OPEC’s ongoing production cuts are providing some price support.