Oil Prices Drop Over $1 Per Barrel Amid Demand Concerns

During the session, both benchmarks fluctuated between $1 down and $1 up following news that OPEC+ was discussing delaying a potential production increase due to expected rising output in Libya.

Oil prices fell more than $1 per barrel on Wednesday in a volatile session, as traders grew concerned about demand in the coming months amid mixed signals from producers about increasing supply.

Brent crude futures closed down $1.05, or 1.42%, at $72.70 per barrel. U.S. West Texas Intermediate (WTI) crude futures lost $1.14, or 1.62%, to settle at $69.20 per barrel.

During the session, both benchmarks swung between $1 losses and $1 gains following reports that OPEC+ was considering postponing a planned production increase due to anticipated higher output from Libya.

In a broader selloff, Brent futures have dropped 11%, or about $9, in just over a week, hitting a low of $72.63 on Wednesday.

Weak economic data from the United States and China heightened ongoing expectations of a global economic slowdown and weaker oil demand, contributing to a broader decline in global markets.

Meanwhile, traders believe the conflict that has halted Libya’s oil exports could soon be resolved, leading to an increase in crude supply.

This selloff shifted attention to what OPEC+’s response would be, as the group seemed poised last week to begin planned production increases in October. The latest data has fueled concerns about weaker-than-expected demand in China, the world’s largest crude importer, and the impact on U.S. consumption.