Crude oil falls after OPEC cuts global oil demand forecasts

Crude oil futures closed under pressure Wednesday (Oct. 12) after the Organization of Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth this year and next.

  • WTI crude futures fell $2.08, or 2.3%, at $87.27 a barrel.
  • BRENT crude futures fell $1.84, or 2%, at $92.45 a barrel.

The crude oil futures contract fell after OPEC announced it would lower its forecasts for global oil demand this year and next. Global oil demand is being affected by the economic slowdown, rising inflation, and tightening measures by China to contain the spread of COVID-19.

In its October oil market report, OPEC said oil demand will increase by 2.64 million barrels per day, or 2.7%, this year, down 460,000 barrels per day from earlier forecasts.

OPEC also said oil demand will increase by 2.34 million barrels next year, down 360,000 barrels per day from its previous forecast.

Meanwhile, OPEC lowered its global growth forecast for this year from 3.1% to 2.7% and its forecast for next year to 2.5%.

Investors eye the release of U.S. oil inventory data by the U.S. government’s Energy Information Administration (EIA) on Thursday (Oct. 13).

The Spot Market is Open

Thursday, October 13, 2022

Energy
Updated at
USD
Price

Chnage

%Change
Crude Oil
10.10

87.05

-0.22

-0.25%

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