Oil Prices Drop on Demand Concern

Oil prices fell more than 1% on Monday, touching their lowest since July, as optimism about demand recovery weakened after Saudi Arabia cut the October official selling price for Arab light crude it sells to Asia by the biggest margin since May.

Meantime, the US government report last week showed domestic gasoline demand fell again.

Reuters reported that the world remained awash with fuel supplies despite OPEC+ supply cuts and efforts from governments to prop up their economies.

Sentiment was also dragged down by tech tensions between Beijing and Washington, with President Donald Trump’s administration is considering imposing export restrictions on China’s largest manufacturer of semiconductors, Semiconductor Manufacturing International Corporation.

At around 03:00 AM GMT, WTI crude tumbled 1.2% to $39.31 a barrel, while Brent crude dropped by 1% to $42.25 a barrel.

Trading Economics


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