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Oil began to actively fall on fears of declining global demand

UNITED STATES, WASHINGTON (OBSERVATORY) — Oil prices of reference grades actively drop during trading on Monday and finish the quarter in the red, because fears of declining global demand for fuel outweigh the risks of supply disruptions.

November futures for Brent crude on the London ICE Futures exchange by 14:52 UTC fell by $ 0.91 (1.47%) to $ 61 per barrel. The more actively traded December contract fell in price by $ 0.61 (1%) – to $ 60.43 per barrel.

Quotations of WTI oil futures for November in electronic trading on the New York Mercantile Exchange (NYMEX) by the indicated time drop by $ 0.56 (1%) – up to $ 55.35 per barrel.

Since the beginning of the quarter, the price of Brent has fallen by about 8% on fears of a slowdown in global economic growth and a decrease in oil demand. In mid-September, there was a rise in quotes amid drone attacks on Saudi Arabia, but then it came to naught due to the restoration of oil production and supplies.

“The market did not see a supply problem, as damage to the Abkayk complex seemed to be limited, and Saudi Arabia continues to fulfill its obligations to customers. The slowdown in global growth caused by trade wars and the active export of oil from the United States also imposes restrictions on market growth,” said Harry Chilingirian, senior strategist of the commodity market in the French financial conglomerate BHP Paribas

The market is also responding to a message from the oil service company Baker Hughes that the number of operating oil and gas production facilities in the US over the past week has fallen to its lowest level since April 2017 – 860.

Including the number of oil rigs, it fell for the sixth week in a row – by 6, to 713.

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