Despite aims to move farther away from non-renewable sources of energy, crude oil continues to placate the way many nations, their economies and the global economy at large.
Crude Oil Prices Slump
Recently, after a spike in prices, particularly that of Brent Crude, due to rising tensions and anxiety over Chinese consumption, crude oil prices have dipped significantly.
As per the latest reports, both benchmarks, the Brent Crude and the West Texas Index, saw their prices drop by over 3 per cent.
The most commonly used Brent Crude saw its prices drop by 3.17 per cent or USD 2.50. This took the overall value to USD 76.32 per barrel.
Reuters
When it comes to the West Texas Index (WTI), it saw an even bigger drop in its prices. The prices dropped by 3.39 per cent or USD 2.99, taking the overall price to USD 73.03.
Reuters
China Slows Down
This development is being largely attributed to Chinese data release. As per the latest information released by the Chinese government, the 'factory of the world' has seen its factory activity falter. In addition, it has also seen its larger economic activity slowdown as well.
This has arguably stoked fears of its consumption going down even further. In addition, given the decline in output, the cycle of slowdown is only further reinforced.
When it comes to the West Texas Index (WTI), it saw an even bigger drop in its prices. The prices dropped by 3.39 per cent or USD 2.99, taking the overall price to USD 73.03. |
OPEC+ To Increase Production
Another country that is seeing a slowdown in oil demand and consumption is the United States. The United States has one of the largest oil reserves in the world, with its capacity rising thanks to the fracking 'revolution'.
Another factor that is cited by some is the availability of the dino juice itself. The cartel of oil-producing nations, The Organisation of the Petroleum Exporting Countries (OPEC) is all set to proceed with a planned oil output hike from next month (October).
