Today: March 05, 2024
Today: March 05, 2024

Oil prices hold near six-month lows

Share This
Oil prices hold near six-month lows
Robert Harvey
December 12, 2023

By Robert Harvey

LONDON (Reuters) - Oil prices stabilised on Wednesday, but remained near six-month lows after a more than 3% drop in the previous session, with investors concerned about oversupply and waning demand.

Brent crude futures for February were up 15 cents, or 0.2%, at $73.39 a barrel at 1437 GMT. U.S. West Texas Intermediate crude futures for January gained 18 cents, or 0.26%, to $68.79 a barrel.

Brent futures closed at their lowest since late June on Tuesday at $73.24 a barrel, incurring a $2.79 a barrel day-on-day loss. At their intra-day low on Wednesday, Brent futures touched a fresh six-month low of $72.29 a barrel.

"Concerns around the global economy next year, a weak commitment to output cuts from OPEC+ and higher output elsewhere, including record levels in the United States, is weighing heavily on prices into year-end," said OANDA analyst Craig Erlam.

In its latest monthly oil market report, OPEC blamed the latest crude price slide on "exaggerated concerns" about oil demand growth.

The group of oil producing nations kept its forecast for world oil demand growth unchanged for 2024 at 2.25 million barrels per day (bpd).

Investors will be looking ahead to the U.S. Federal Reserve's policy decision later on Wednesday, where interest rates are largely expected to be left unchanged for a third time in a row.

Markets have priced in "aggressive rate cuts" for 2024, said Yeap Jun Rong, market strategist at IG. "Any disappointment on that front could strengthen the U.S. dollar and weigh on the risk environment," pushing down oil prices, Yeap said.

Elsewhere on Wednesday, nearly 200 nations reached an historic deal at the COP28 conference to begin reducing the global consumption of fossil fuels, meant to send a signal to investors in oil and other fossil fuels.

Saudi Arabia's energy minister said he was in agreement with the COP28 presidency on the final deal, adding that it would not affect the Kingdom's hydrocarbon exports.

Israel said it will continue its war in Gaza whether or not it has international backing, after the United Nations passed a resolution calling for a ceasefire and U.S. President Joe Biden warned that Israel was starting to lose support because of civilian deaths.

(Reporting by Robert Harvey in London and Colleen Howe in Beijing; Editing by Mark Potter, Kirsten Donovan)


Analysis-Chinese developers resume UK commercial property retreat

By Iain Withers and Marc Jones LONDON (Reuters) - Some big Chinese developers are set to offload more real estate in Britain to raise cash, property agents say, making the most of a slowly thawing

Blackrock sees India, Indonesia as promising for investment opportunities

JAKARTA (Reuters) - U.S. investment firm BlackRock sees India and Indonesia as two Asia-Pacific countries offering a lot of investment opportunities, its head of research for the region said on

Cryptoverse: Asian traders give bitcoin blast-off

By Jihoon Lee and Jaspreet Kalra SEOUL/MUMBAI (Reuters) - Bitcoin's runaway rally is being driven by investors in Asia.

Analysis-Boeing's Spirit Aero bid could help supply chain but is no cure-all

By Allison Lampert and Abhijith Ganapavaram (Reuters) - Boeing's possible takeover of Spirit AeroSystems, along with delaying plans to ramp up production of 737 MAX jets, could help the planemaker

Thousands of Korean doctors face license suspensions as Seoul moves to prosecute strike leaders

Thousands of striking junior doctors in South Korea are facing proceedings to suspend their medical licenses Tuesday

Several people dead after small airplane crashes in Nashville

(Reuters) - Several people have died after a single-engine airplane crashed beside a highway in Nashville, the city's metro police department said in a post on social media platform X on Monday.


AI pervades everyday life with almost no oversight. States scramble to catch up

Lawmakers in at least seven states are taking big legislative swings to regulate bias in artificial intelligence

Miami Beach is breaking up with spring break — or at least trying to

Miami Beach is trying to break up with spring break, but it’s not yet clear whether spring break will take the hint

Stocks skid as China's NPC disappoints, bitcoin nears record

By Kevin Buckland TOKYO (Reuters) - Chinese stocks stumbled on Tuesday, dragging Asian peers with them, as investors showed their disappointment at Beijing's plans to support the economy as its week-

Dollar a spectator to China news, yen ponders rate risks

By Wayne Cole SYDNEY (Reuters) - The dollar held steady on the yuan on Tuesday as markets digested a welter of policy statements out of China, while a rebound in Tokyo inflation seemed to take Japan a

- Advertisement -
Advertisement: Limited Time Offer