The oil market has erased all gains made since the beginning of the year, driven by signs of weakening economic activity in China and the U.S. As of Wednesday, September 4, global oil prices continue to decline, hitting their lowest levels since December 2023, according to trading data.
November futures for Brent crude on the ICE Futures exchange in London fell by $0.92 (1.25%) to $72.83 per barrel. On Tuesday, these contracts dropped by $3.77 (4.9%) to $73.75 per barrel, marking their lowest level since December 12, 2023.
Meanwhile, October futures for WTI crude on the New York Mercantile Exchange (NYMEX) decreased by $0.96 (1.36%) to $69.38 per barrel. In the previous session, these contracts declined by $3.21 (4.4%) to $70.34 per barrel, a minimum since December 13.
Western agencies report that the oil market has fully lost its upward momentum seen earlier this year, mainly due to concerns over weakening demand following news of slowing economic activity in China, the world’s largest crude oil importer. In the U.S., the ISM Manufacturing Index for August rose slightly to 47.2 points from July’s 46.8 points, but it remains below 50, indicating a contraction in activity.
