Oil demand concerns

Oil prices were weighed down by concerns about tight supply on the demand side. Oil extended losses as concerns about the short-term demand outlook overshadowed signs of tightening supplies heading into winter. U.S. crude fell to $85 a barrel on the new trading day after closing 3.5 percent lower in the previous session. Brent crude was flat at $93. OPEC cut its fourth-quarter global demand forecast again. China’s economy slowed in October as the pandemic soured the outlook for consumption and disrupted economic activity. While the government has eased some of its pandemic measures, infections continue to rise across the country. “Weak Chinese data will only serve to reinforce the view that the country’s oil demand will remain in recession as long as strict COVID-19 control policies remain in place,” said Vandana Hari, founder of Vanda Insights. Crude has lost about a third of its value since early June as a deepening economic slowdown weighs on demand. Still, the Organization of the Petroleum Exporting Countries and its allies have begun cutting production and the European Union's sanctions on Russia will reduce flows from December, clouding the supply outlook.