Oil Falls as Demand Concerns Continue to Weigh on Market

Oil prices fell on Tuesday, September 15th, as a result of concerns about a slow recovery of global demand for fuel that has been hit by the Coronavirus pandemic, in light of a warning about pessimistic expectations from major oil producers.

Brent crude fell four cents, equivalent to 0.1%, to $ 39.57 a barrel by 06:42 GMT, while US West Texas Intermediate crude lost two years, equivalent to 0.1% to $ 37.24 a barrel. And the two crudes closed slightly lower yesterday.

But the losses were limited by covering short positions before an important meeting of OPEC+ this week to discuss compliance with an ambitious program of production cuts to support prices.

The major producers and trading companies in the sector expect a bleak future for global fuel demand due to the pandemic threatening the global economy, and OPEC has reduced its forecast for oil demand, while the major oil company BP said that demand may reach its peak in 2019.

The Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report that global oil demand will drop 9.46 million barrels per day this year, up from its forecast a month ago for a decrease of 9.06 million barrels per day.