Oil is shutting down because investors are worried about global demand

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Crude oil storage tanks will be on display in Cushing, Oklahoma, USA on April 21, 2020 at the Cush Oil Oil Center. REUTERS / Drone Base / File Photo

  • Russia says world oil demand may not return to 2019 levels
  • OPEC + is struggling to shed more oil to meet growing demand
  • Coming up – API information on USA goods from 4:30 p.m.

NEW YORK, Sept. 21 (Reuters) – Oil prices rose slightly at a joint meeting on Tuesday as global consumer sentiment raises concerns about the struggles between major OPEC producers.

Both standards increased by $ 1 per barrel, but Brent made a profit and fell to about 2% on Monday at 11:49 am EDT (1549 GMT) by 32 cents to $ 74.24.

The West Texas Intermediate (WTI) contract, which expires on Tuesday, rose 16 cents to $ 70.45 after falling 2.3% in the previous session. The most active November deal rose 27 cents per barrel to $ 70.41.

Brent and the more active WTI contract have already reached $ 75.18 per barrel and $ 71.48 per barrel, respectively.

“It looks like a very nervous business today,” said Phil Flynn, senior analyst at the Chicago Foots Group. There are a few persistent concerns about the future impact of interest.

When the balance of power changes, Russia believes that world oil demand may not reach a record high before 2019.

But as the world recovers from the cholera epidemic, OPEC and its partners struggle to pump enough oil in August to meet current demand. As part of the OPEC + agreement, many countries appear to be producing less than expected – suggesting a supply gap could widen. Read more

Investors in financial assets have been shaken by volatility in Chinese markets such as the Overgrade (3333.HK) crisis. Read more

The US Federal Reserve is also expected to tighten monetary policy that could reduce investor tolerance for risky assets, such as oil. Federal Reserve policymakers will begin a two-day meeting on Tuesday. Read more

U.S. oil production is still recovering from a hurricane on the Gulf Coast. RDSa.L, Mexico’s largest oil producer, said on Monday that hurricane damage would reduce production early next year. Read more

About 18% of U.S. Gulf oil and 27% of natural gas production went offline on Monday after more than three weeks after Hurricane Ida.

Industrial data on Tuesday is expected to show the collapse of U.S. crude and stockpiles.

Report by Stephanie Kelly in New York; Additional report by Ahmed Gadar in London and Tokyo Aaron ld Lidrick; Correction by Louis Sky, Barbara Lewis and David Gregory

Our Standards – Thomson Reuters Principles.

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