The global oil market faced a downturn on October 14, 2024, with crude oil futures closing lower due to disappointing inflation data from China and uncertainty surrounding Beijing’s economic stimulus plans. The Organization of Petroleum Exporting Countries (OPEC) also reduced its oil demand growth forecast for the rest of 2024 and 2025, adding to market concerns.
Despite slight easing, concerns about China’s economic uncertainty weighed on the commodity. West Texas Intermediate (WTI) crude for November delivery fell by 2.28%, closing at $73.83 per barrel. Brent crude for December delivery dropped by 2%, settling at $77.46 per barrel.
China’s Finance Minister’s statement over the weekend regarding Beijing’s plans added to the market anxieties, without providing specifics on a comprehensive plan, sparking worries about oil demand in China.
OPEC also released a report cutting its global oil demand growth forecast for the year. Citigroup analysts speculated that crude oil prices could reach triple digits if Middle East conflicts disrupt supplies, despite weak market fundamentals, projecting a price of $120 per barrel for the fourth quarter of 2024 and first quarter of 2025.
These events demonstrate the intricate interplay of global events and economic factors shaping the oil market, as geopolitical tensions and economic uncertainties persist.