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Oil prices drop as demand worries prevail

New York, U.S. | Xinhua | Oil prices fell on Friday as traders worried about a deteriorating demand outlook.

The West Texas Intermediate (WTI) for November delivery decreased 1.74 U.S. dollars, or 2.1 percent, to settle at 79.49 dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery lost 53 cents, or 0.6 percent, to settle at 87.96 dollars a barrel on the London ICE Futures Exchange.

The pullback came as oil participants grew fearful that aggressive monetary tightening by central banks could increase the risk of a recession, hurting demand for fuel.

Markets also awaited a key decision by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as the group is set to meet next Wednesday and discuss future output strategy.

Despite Friday’s weakness, oil prices managed to book a weekly gain. The WTI was up nearly 1 percent for the week, while Brent rose 2.1 percent.

For September, the U.S. crude benchmark lost 11 percent, and Brent dropped 8.8 percent, according to Dow Jones Market Data.

One comment

  1. Hope the oil prices go down hence it will reduce on fuel costs and food costs.

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