Ahead of the year’s final decision on Federal Reserve interest rates, oil prices dropped to their lowest in six months.
Brent crude, the global benchmark, plunged to $72.51 per barrel, marking its lowest point since late June.
In the meantime, the US’s West Texas Intermediate experienced a decline, reaching $68.71 per barrel. This drop was influenced by concerns over diminishing demand due to a slowdown in worldwide economic growth.
Oil Prices on Track for Lengthiest Decline Since 2018
The oil market also faced pressure from worries about potential oversupply. This concern was heightened after the US Energy Information Administration increased its 2023 US supply forecast by 300,000 barrels per day, coupled with a surge in Russian crude shipments.
Market participants were also evaluating the effects of the Cop28 climate summit’s agreement to start reducing global fossil fuel consumption. Additionally, they were considering the implications of Argentina’s decision to devalue its peso by over 50%, reduce energy subsidies, and cancel public work tenders.
Despite these challenges, Brent crude has seen a modest recovery, rising 0.2% on the day to just over $73 per barrel.
