Crude oil prices fell on Tuesday due to rising inflation and demand concerns. However, the oil market faces significant uncertainty around the Fed, OPEC's production cuts, and weakening China indicators.
WTI fell to a 5-month low on Tuesday due to uncertainty around OPEC+ cuts and increased API stocks. With concerns over demand growing and US production at record highs, crude declined for its fourth consecutive session.
In the wake of China's $200B stimulus injection and IEA’s raised forecast for oil demand, the oil market is experiencing a ripple effect. Yet, challenges persist, and the full impact on oil prices remains to be seen as we approach the end of 2023.
WTI is surging toward $100 after OPEC+ cuts extension in early September, supported by the latest API and China data. However, concerns about the impact of higher prices on inflation and the possibility of a recession in the US loom.
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