Crude oil closes in the red – investors focus on the upcoming OPEC meeting

Crude oil closed Thursday (Sept. 29) in the red as markets came under pressure from recession concerns. Investors keep an eye on the meeting of OPEC and OPEC+ next week.

  • WTI crude futures were down 92 cents, or 1.1%, at $81.23 a barrel.
  • BRENT crude futures were down 83 cents, or 0.9%, at $88.49 a barrel.

Investors are concerned that monetary tightening by the Federal Reserve (Fed) will hurt oil demand.

The latest data from the U.S. Department of Commerce shows that gross domestic product (GDP) contracted by 0.6% in the second quarter of 2022, following a 1.6% decline in the first quarter. The second consecutive quarter of GDP contraction indicates that the U.S. economy has entered a technical recession.

Crude oil contracts also weakened after it was reported that Hurricane Ian began to weaken. This will bring U.S. oil production back to normal levels in the coming days.

The number of long-term vacation trips in China is expected to fall to its lowest level in years. This is due to concerns about the spread of COVID-19, which is why Chinese authorities are urging people to avoid unnecessary travel.

The Chinese national holiday lasts from October 1 to 7.

Investors are waiting for OPEC’s oil production policy meeting on Oct. 5 and expect the meeting to result in a production cut to support oil prices.

The Spot Market is Open

Friday, September 30, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.45

81.11

-0.12

-0.15%

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