Oil prices have fallen to their lowest level since February of this year as demand in the U.S.
weakens.
West Texas Intermediate crude oil, the U.S. standard, fell $3.76 U.S. to $90.66 U.S. a barrel,
while Brent crude oil, the international benchmark, declined $3.76 U.S. to trade at $96.78 U.S.
per barrel.
Crude oil prices are now at their lowest level since before Russia invaded Ukraine at the end of
February.
The price declines come after a report showed that U.S. stockpiles of crude oil increased by
more than 4 million barrels in July, while seasonal demand for gasoline in the U.S. fell below
2020 levels in the month.
The U.S. data was reported as OPEC cited the prospect of slowing demand in its decision to lift
supplies of crude oil by only 100,000 barrels a day, a tiny fraction of the group’s overall
production capacity and a much smaller increase than was expected by industry analysts and
governments around the world.
The Organization of the Petroleum Exporting Countries (OPEC) said a recession in the U.S. and
ongoing COVID-19 lockdowns in China are harming global demand for oil
West Texas Intermediate crude oil’s prompt-spread, a measure of supply and demand, is
trading below $1 U.S. a barrel for the first time since April.
