(Investing) – Oil prices slipped on Wednesday, trading near their lowest in two weeks, a day after OPEC lowered global oil demand growth forecasts for 2024 and 2025 and amid demand concerns in China.
OPEC cited weakness in China, India, and other regions for its decision, which marked the producer group’s fourth straight downward revision for 2024.
Brent futures were 65 cents, or 0.9%, lower at $71.24 a barrel at 1434 GMT, while U.S. West Texas Intermediate (WTI) crude futures slipped 54 cents, or 0.8%, at $67.58.
Charalampos Pissouros, analyst at XM, said oil has also been under pressure from a stronger dollar after Donald Trump’s U.S. presidential election win and weak Chinese stimulus efforts.
“All these developments keep the risks surrounding oil prices tilted to the downside, suggesting that WTI crude oil may soon visit its September lows of around $65.70,” said Pissouros.
The International Energy Agency, which has a much lower demand growth forecast than OPEC’s, is set to publish its updated estimate on Thursday.
On the supply side, markets could still face disruption from Iran or further conflict between Iran and Israel, Barclays (LON:BARC) said.
Trump’s expected pick for secretary of state, Senator Marco Rubio, could be bullish for prices as his hawkish view on Iran could see sanctions enforced, potentially removing 1.3 million bpd from global supply, said Panmure Liberum’s Ashley Kelty.
Iran’s oil minister said Tehran had made plans to sustain oil production and exports, and was ready for possible oil curbs by the U.S, the ministry’s news website Shana reported.
The American Petroleum Institute’s data, due at 4:30 p.m. EST (2130 GMT) on Wednesday is also in focus, with analysts polled by Reuters expecting a 100,000-barrel rise in crude inventories for the week ending Nov. 8.
