Oil closes lower, Brent holds above $87

Oil drilling rigs

Oil prices closed with a decline today, Oct. 10, after the International Monetary Fund (IMF) reduced its forecasts for the growth of the Chinese economy during the current and next years by 0.1% and 0.2% to 5% and 4.2%, respectively.

Brent crude futures for December delivery fell by 0.55%, or 50 cents, to $87.65 a barrel, after touching $88.49 during trading.

WTI crude for November delivery decreased by 0.45%, or 41 cents, to record $85.97 per barrel.

The Chief Economist at the IMF said that it is too early to determine how the unrest in the Middle East will affect the global economy, adding that a 10% increase in oil prices reduces global output by about 0.2% in the following year and boosts global inflation by about 0.4%.

Meanwhile, the Energy Information Administration (EIA) said that US crude oil exports reached record levels during the first half of the year, averaging 3.99 million barrels per day—an increase of 19% over the first half of 2022.

American Petroleum Institute's report on oil inventories is expected on Oct. 11, and the EIA is scheduled to issue official data on inventories the next day, amid expectations that crude inventories will rise by 1.3 million barrels.