Oil falls 2% amid demand concerns

Oil closed lower today, Oct. 24, after the International Energy Agency (IEA) report and as S&P Global Ratings said it expects China’s economic growth will slow to 2.9% next year if the real estate market crisis continues.

Brent crude futures for December delivery fell 1.95%, or $1.76, to settle at $88.07 per barrel, after rising during the day to $90.68.

WTI crude for December delivery lost nearly 2%, or $1.75, to record $83.74 per barrel—the lowest settlement since Oct. 12.

In its annual report, the IEA said oil demand is expected to decline to 92.5 million barrels per day by 2030, and 54.8 million barrels per day by 2050, if governments adhere to their pledges to transition towards clean energy.

Meanwhile, Bloomberg reported that the United States Oil Fund (USO) attracted new inflows of about $400 million over the past few days, in light of the escalation of geopolitical tensions in the Middle East, making it the largest oil exchange-traded fund in the world.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official inventory data on Oct. 25, amid expectations that crude inventories will fall by 500,000 barrels.