Crude oil falls by more than 2% as demand is expected to level off

Crude oil futures closed more than 2% lower on Friday (Nov. 25) as concerns over the prospect of a drop in oil demand continued to hold back the market.

  • WTI crude futures fell $1.66, or 2.13%, to close at $76.28 per barrel, down 4.78% for the week.
  • BRENT crude futures fell $1.71, or 2%, to $83.63 a barrel and were down 4.55% for the week.

Oil prices continue to be pressured by fears that a surge in COVID-19 cases in China will trigger lockdown measures that will impact oil demand.

Analysts expect the market to remain flat ahead of the Dec. 5 deadline for the G7 and its allies to set a cap on Russian oil prices.

The oil price cap was a punitive measure against Russia’s military invasion of Ukraine, which, once announced, will prevent shipping companies from providing services related to the transportation of Russian oil cargoes above the cap set by the G7 and its partners.

Investors are waiting for the December 4 production policy meeting between the Organization of Petroleum Exporting Countries (OPEC) and OPEC+. Earlier, Saudi Arabia denied a Wall Street Journal report that OPEC+ will hold talks regarding the decision to increase oil production capacity by 500,000 barrels per day at the said meeting.

The Spot Market is Closed

Saturday, November 26, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.10

76.55

-1.39

-1.78%

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