Renewed Demand Concerns Still Dragging Oil Lower

WTI crude oil price is down for the second successive day. At the time of writing, the American crude is trading between $90.35 and $90.45 per barrel.

Earlier on the day, crude price probed below $90 per barrel. Observers and economists cite pressures by accelerating concerns about the global economy’s slowdown, in addition to OPEC’s oil output in August to the highest level since the early pandemic era in late 2020 as well as the Chinese manufacturing sector slowdown.

All these factors contribute to growing concerns about demand globally. After retreating by 5.5% on Tuesday, oil prices continued to fall on Wednesday morning as news of new Covid lockdowns in China triggered new demand-related fears.

Oil prices are now heading for a third consecutive month of losses in August and the longest monthly losing streak since 2020.