SINGAPORE- Oil prices edged lower on Tuesday, breaking a five-day streak of gains, as markets refocused on concerns about demand after OPEC on Monday cut its forecast for demand growth in 2024 due to softer expectations in China.
Global benchmark Brent crude futures fell 78 cents, or 0.95 percent , to $81.52 a barrel. US West Texas Intermediate crude futures slipped to $79.33 a barrel, down 73 cents, or 0.91 percent .
Brent had gained more than 3 percent on Monday, while US crude futures had risen more than 4 percent .
The Organization of the Petroleum Exporting Countries’ (OPEC) global demand forecast reduction for 2024 highlighted the dilemma faced by the wider OPEC+ group in raising production from October.
The cut to OPEC’s 2024 forecast was the first since it was made in July 2023, and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption and as a crisis in the property sector hampers the world’s second-largest economy.
“Demand concerns for crude oil remain on the table,” said Yeap Jun Rong, market strategist at IG, adding that reservations lingered ahead of upcoming US inflation data.
“Any reflection of higher economic risks could weigh on oil prices, at a time when OPEC+ has cut their 2024 demand forecast and are set to roll back on their production cuts starting October, which may point to a less tight oil market ahead,” Yeap said.
