OPEC+ struggles to stem slump in crude oil trade as Chinese economy raises concerns
In a significant slowdown, US crude oil prices fell 4% on Wednesday, hitting their lowest level since late June. The West Texas Intermediate (WTI) contract for January closed at $69.38 a barrel, while the Brent contract for February closed at $74.30 a barrel. This decline, which has continued for five consecutive days, comes despite OPEC+'s efforts to boost prices through promised supply cuts.
The current decline in oil prices is mainly attributed to growing global economic uncertainties, with particular concern for the Chinese economy. Moody's recent downgrade of China's government credit rating to negative has amplified fears about a possible economic slowdown.
Retail gasoline prices reflect oil gains
In the United States, falling oil prices have led to retail gasoline prices being the lowest since January. As of Wednesday, the average price of gasoline was $3.22 a gallon, reflecting the downward trend in oil prices.
Despite assurances from OPEC+ members to implement supply cuts over the next year, the market remains skeptical. The group faces challenges in stabilizing oil prices, and questions remain about the effectiveness of the proposed cuts in the volatile global economic climate.
Mixed signals from US data
Adding to the uncertainty, US data present mixed signals on crude oil and gasoline inventories. According to the Energy Information Agency, U.S. crude oil inventories fell 4.6 million barrels during the week ending Dec. 1, while gasoline inventories unexpectedly rose by 5.4 million barrels. These conflicting data contribute to the unpredictability of crude oil trading prices.
As the global economy faces these uncertainties and OPEC+ attempts to restore market stability, the energy market remains alert, with stakeholders closely monitoring developments for possible changes in energy price dynamics. Petroleum.
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