WTI crude dips further, records lowest close in 5 months

Oil drilling rigs

Oil declined today, Dec. 4, as markets absorbed OPEC+ decision on voluntary reductions and amid escalating geopolitical tensions in the Middle East.

Brent crude futures for February delivery (the most active) fell 1.1%, or 85 cents, to close at $78.03 a barrel – the lowest level since Nov. 16.

WTI crude for January delivery fell by 1.4%, or $1.03, to $73.04 per barrel – the lowest contract settlement since July 10.

Analysts at BMI, a unit of Fitch Solutions, expect the average price of Brent crude to rise to $85 per barrel next year.

The research company noted that OPEC+ is expected to extend production restrictions during the first half of 2024, because any increases in supply are likely to lead to a sharp loss of Brent crude at a time when the global economy is slowing.