Oil prices fall 3% to hit 2-month low as demand concerns outweigh supply cuts
Oil prices fell about 3 per cent to their lowest since late August on Tuesday, November 7, as demand concerns arose from mixed Chinese data and waning investor enthusiasm on interest rate cuts.
Brent crude futures fell $2.53, or 3 per cent, to $82.65 a barrel, while US West Texas Intermediate crude fell to $78.35 a barrel, down $2.47, or 3.1 per cent. Both contracts hit their lowest levels since Aug. 25, and Brent futures were set to close below $84 a barrel for the first time since Hamas Islamists’ October 7 attack on Israel, according to news agency Reuters.
The premium on front-month loading Brent contracts over ones loading in six months was also at a 2-1/2-month low, indicating market participants are less concerned with current supply deficits.
Back home, on the Multi Commodity Exchange (MCX), crude oil futures due for a November 17 expiry, was last trading lower by 4.66 per cent at ₹6,508 per bbl, having swung between ₹6,504 and ₹6,730 per bbl during the session so far, against a previous close of ₹6,826 per barrel.
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Updated: 07 Nov 2023, 10:44 PM IST
