Oil drops 4% as major economies slow
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The news: Oil prices have dropped by about 4% after a bigger-than-expected rise in US gasoline inventories prompted concerns about demand, Reuters reports. Brent crude futures fell below $US75 per barrel for the first time since early July.
The numbers: Brent crude futures settled down $2.99, or 3.8%, at $74.22 a barrel. US WTI crude futures fell by $3.07, or 4.2%, to $69.25 a barrel.
The context: There have been signs of the US and other economies slowing as rate hikes curb spending.
Concerns about China's economy may have contributed to the fall in prices. Ratings agency Moody's this week downgraded its outlook on China's A1 rating from stable to negative.
The Organisation of the Petroleum Exporting Countries and allies such as Russia last week agreed to reduce output by about 2.2 million barrels per day for the first quarter of 2024.
The source: Reuters
