West Texas Intermediate (WTI) Crude Oil Contract New York markets closed lower on Monday (December 4) amid concerns about weak demand. And uncertainty about the size and timing of oil production cuts by OPEC+.
The WTI contract will be delivered in January. The price of oil decreased by $1.03, or 1.39%, to close at $73.04 per barrel.
The Brent crude oil (BRENT) contract will be delivered in February. The price of oil fell by 85 cents, or 1.08%, to close at $78.03 per barrel.
The price of crude oil continued its decline since last week when it fell by 2% after the OPEC+ group announced production cuts on Thursday (November 30).
whileMr. Andrew Lebo This was stated by the head of Lipow Oil Associates, “The market considers that OPEC’s plan to cut production has no significant impact on the market.”
Prince’s sideAbdulaziz bin Salman The Saudi Energy Minister said in a television interview with Bloomberg on Monday that he expects OPEC and its allies to reduce crude production by about 2.2 million barrels, as already announced last week.
This was last week. OPEC+ announced voluntary cuts in oil production. Which raises doubts about whether manufacturers will implement the production cuts in full? Investors are unsure how to measure these production cuts.
The oil market remains under pressure due to weaker demand trends. A survey conducted on Friday (December 1) indicated that global manufacturing activity remained weak in November. The productive activity of factories in the euro area contracted. At the same time, there are mixed signals about the strength of the Chinese economy.
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