A number of worries caused crude oil to suffer a severe setback, falling 3.58% to 62.74 per barrel. Due to weaker-than-expected Chinese exports in October and a U.S. government report projecting a 20-year low in U.S. petrol demand per capita next year, the demand picture was concerning.
This suggested that demand may be declining globally. Regarding supply, Russian shipments hit a four-month high while U.S. crude stocks rose by about 12 million barrels, the biggest increase since early 2023.
In an effort to stabilise the market, Saudi Arabia and Russia did, however, reiterate their commitment to voluntary oil production cutbacks through the end of the year. Barclays (LON:BARC) lowered its projected price of Brent crude for 2024 by $4 to $93 per barrel.
This shift was ascribed to the robust U.S. oil production as well as increased Venezuelan output once the sanctions were loosened. Although consumption was predicted to decline, the U.S. Energy Information Administration predicted a small decrease in U.S. petroleum output for this year.
