BEIJING- Oil prices fell in Wednesday Asian morning trading as markets continue to doubt the impact of OPEC+ cuts and take cues from a worsening demand outlook in China.
Brent crude futures fell 8 cents, or 0.1 percent , to $77.12 a barrel. US WTI crude futures were down 13 cents, or 0.2 percent , at $72.19 a barrel.
Both benchmarks closed at their lowest level since July 6 in the previous session, with WTI seeing four consecutive days of declines.
Voluntary output cuts of about 2.2 million barrels per day (bpd) for the first quarter of 2024 by the Organization of the Petroleum Exporting Countries and allies such as Russia (OPEC+) have failed to support market sentiment, amid skepticism over whether the cuts would be implemented in full.
The cuts include an extension of Saudi and Russian voluntary cuts of 1.3 million bpd.
Comments from Russian deputy prime minister Alexander Novak that OPEC+ was “ready to take additional actions to eliminate speculation and volatility” did not significantly influence market sentiment.
Russian President Vladimir Putin is set to visit key OPEC members Saudi Arabia and the United Arab Emirates on Wednesday for talks that are expected to include oil market cooperation.
Bearish sentiment has also been driven by concerns over China’s economic health.
On Tuesday, rating agency Moody’s lowered the outlook on China’s A1 rating to negative from stable, citing “increased risks related to structurally and persistently lower medium-term economic growth and the ongoing downsizing of the property sector”.
