• 3 minutes The World Economic Forum (WEF) - Davos 2022 Conference held this last week of May
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 4 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 3 days Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 4 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"

Breaking News:

Europe's Largest LNG Unit Restarts

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Tank On Global Demand Concerns

Oil prices plunged on Tuesday morning, with the Brent benchmark sliding to $40 a barrel, as the market looks increasingly concerned that oil demand recovery is faltering with the end of the U.S. driving season and weak refining margins in Asia.

As of 9:40 a.m. EDT on Tuesday, WTI Crude was down 6.97 percent at $37.00—the lowest level since the middle of June, and Brent Crude was plummeting 4.50 percent at $40.04, also the lowest price since June.

The difference in performance between the two benchmarks today is due to a Labor Day settlement mismatch, John Hardy, Head of FX Strategy at Saxo Bank, said.

“Rising Covid-19 cases around the world continue to raise concerns about the short-term demand outlook. To the list we can add the end of the US summer driving season, lower Chinese imports and a stronger dollar,” Hardy said, noting that the key support in Brent is now at $40.   

In a sign that demand recovery is faltering, over the weekend, the world’s top oil exporter Saudi Arabia cut its official selling prices for crude oil for October.

“Clearly this suggests that the market is not tightening as quickly as many had anticipated, with supply edging higher, and with demand clearly faltering,” ING strategists Warren Patterson and Wenyu Yao said on Tuesday.

Rystad Energy’s Senior Oil Markets Analyst Paola Rodriguez-Masiu commented on the plunging prices on Tuesday:

“Today’s oil price move is a clear sign that the market now seriously worries about the future of oil demand and not just plays a bearish-bullish daily trading game that sends prices swinging.”

“The cocktail of more Covid-19 infections and an expected decline in road fuel demand in the US is strong enough to put healthier WTI prices to sleep for a while until the hangover is over,” Rodriguez-Masiu said.

According to the analyst, the widening contango in both WTI and Brent is set to incentivize floating storage again, when traders will charter tankers to store oil to sell at a profit at a later stage. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News