Oil prices in Asian trading on Tuesday continued their decline from the previous session, reaching their lowest point in four months. Investors are cautious due to expectations of increased supply later in the year and uncertain demand forecasts, particularly from major consumer the U.S.
Brent crude futures dropped 49 cents to $77.87 per barrel by 0343 GMT, falling below the $80 mark for the first time since February 7. This followed a more than 3% decline on Monday.
Similarly, U.S. West Texas Intermediate crude futures fell 51 cents to $73.71, also near a four-month low after a 3.6% slide on Monday.
Over the weekend, the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to extend most of their oil output cuts into 2025. However, they allowed for gradual unwinding of voluntary cuts by eight members starting from October 2024.
Looking ahead, concerns about weakening demand, especially in the U.S., remain pivotal. U.S. gasoline prices dropped to $3.50 per gallon on average, reflecting subdued consumer demand. Market focus now shifts to upcoming U.S. government data on inventory and product supply, which will provide insights into Memorial Day weekend gasoline consumption and broader demand trends.
Analysts, such as Sparta Commodities' Neil Crosby, emphasize ongoing concerns over U.S. consumer behavior and its global economic implications, suggesting that these factors will likely influence oil prices in the near term.
Paraphrasing text from "Reuters" all rights reserved by the original author.
