Oil slips on demand concerns

Oil drilling rigs

Oil prices turned lower today, Sept. 19, snapping a three-session positive streak, as investors assessed the impact of tighter monetary policy from central banks on demand for crude.

The Organization for Economic Cooperation and Development stated that the global economy is preparing for a slowdown amid rising interest rates and the disappointing post-pandemic recovery of the Chinese economy.

The US Treasury Secretary said that although the recent increase in oil prices is undesirable, it will stabilize in time, and that the US economy is on the right track to achieve a soft landing.

The US Energy Information Administration (EIA) expects US shale oil production to decline to 9.39 million barrels per day during October from 9.43 million barrels per day in September—the lowest level since May 2023.

The EIA report showed that China imported an average of 11.4 million barrels of crude per day during the first half of 2023, an increase of 12% from the 2022 annual average of 10.2 million barrels per day.

Meanwhile, the American Petroleum Institute's report on oil inventories is expected later today, and the EIA is scheduled to issue official inventory data on Sept. 20, amid expectations that crude inventories will fall by 2.67 million barrels.

Brent crude futures for November delivery fell 0.1%, or 9 cents, to close at $94.34 per barrel, after rising during the session to $95.95.

WTI crude for November delivery decreased by 0.1%, or 10 cents, to record $90.48 per barrel, after touching $92.43 during trading.