Crude oil price has reached its lowest point in the last 4 months. Reuters reported that oil prices fell by almost 5% on Thursday night and fell to their lowest level in 4 months. On Thursday, in the international market, Brent crude closed down by 4.6% at 77.42 dollars per barrel and American crude oil closed down by 4.9% at 72.90 dollars per barrel.
This is the lowest price seen since July 7th. However, there was a slight uptick in both benchmarks on Friday. Over the past seven days, crude oil prices have consistently fallen, continuing a downward trend that started three weeks ago. This decline is attributed to the decrease in global demand.
The primary factors contributing to this drop include the rapid accumulations of US crude oil stockpiles and a peak in U.S. oil production. Additionally, America’s economic data, particularly the surge in unemployment benefit claims to a three-month high last week, likely impacted oil prices negatively.
Expectations of reduced demand alongside abundant supply have fueled the decline in crude oil prices. Moreover, the recent deceleration in China’s economic activity has further weakened prices. Previously, the Israel-Hamas conflict led to a rapid surge in oil prices, reaching as high as $96 per barrel.
