Brent crude closes below $70 for first time since December 2021

Oil drilling rigs

Oil deepened losses today, Sept. 10, after OPEC lowered its forecast for global oil demand growth for 2024 and 2025, pointing to the pressures on demand in China from the move towards electric vehicles.

Brent crude futures for November delivery fell 3.7%, or $2.65, to close $69.19 a barrel—its lowest level since the end of 2021.

WTI crude futures for October delivery fell by 4.3%, or $2.96, to $65.75 per barrel.

OPEC now expects global oil demand to rise by 2.03 million barrels per day this year, down from its previous estimate of 2.11 million barrels last month. The group lowered its estimate for global demand growth next year to 1.74 million barrels per day from 1.78 million barrels per day.

The Energy Information Administration (EIA) expects crude oil prices to rise above $80 a barrel this month, with global oil inventories expected to decline due to OPEC+ delaying production increases until December. The agency, however, lowered its forecast for Brent crude prices by 5% to $81.64 during the fourth quarter compared to last month's forecast.
 

Investors are awaiting today the American Petroleum Institute's estimates of the weekly change in US inventories of crude oil, gasoline and distillates, before the official data from the EIA is released on Sept. 11, amid expectations of a 900,000-barrel increase in crude oil inventories.