US benchmark West Texas Intermediate (WTI) crude oil prices were trading around $68.00 on Wednesday (11/13). WTI prices edged lower after the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2024.
OPEC's latest revision to demand growth put selling pressure on the black gold. OPEC said in its monthly report on Tuesday that global oil demand will rise by 1.82 million barrels per day (bps) in 2024, down from the 1.93 million bpd growth it expected last month. OPEC also lowered its estimate for global demand growth in 2025 to 1.54 million bpd from 1.64 million bpd, marking the fourth consecutive downward revision from the producer group.
Disappointment over China's latest stimulus plan weighed on WTI prices as China is the world's second-largest oil consumer. Last week, China announced a 10 trillion yuan stimulus plan, but analysts worry that it will not be enough to stimulate the economy. This, in turn, has raised concerns about a possible decline in China's oil consumption.
A stronger US dollar (USD) contributed to the decline in WTI as it makes USD-denominated oil more expensive. Meanwhile, the US Dollar Index (DXY), a measure of the USD's value relative to a basket of foreign currencies, rose to a fresh six-month peak above the 106.00 mark. Investors will be looking to the US Consumer Price Index (CPI) inflation data for October on Wednesday for fresh impetus. A weaker-than-expected reading could weigh on the greenback and help limit losses in WTI.
Source: FXStreet
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