U.S. oil prices continued to decline for the third consecutive month in September as increased supply from OPEC+ and weak demand from China plagued the market.
The U.S. index fell more than 7% for the month, while global benchmark Brent fell about 9%.
“The oil market is having a panic attack,” Barclays energy analyst Amarpreet Singh told clients in a note Friday. “The balance is expected to ease next year, but concerns may be overdone.”
Barclays expects Brent's average price to be $85 in 2025.
Monday's energy prices are:
- west texas intermediate November contract: up 5 cents (0.07%) to $68.23. Since the beginning of the year, U.S. oil prices have fallen nearly 5%.
- brent November contract: $71.69 per barrel, down 29 cents, or 0.4%. Year-to-date, global benchmarks are down nearly 7%.
- RBOB gasoline October contract: $1.954 per gallon, up 0.05%. Gasoline prices have fallen about 7% since the beginning of the year.
- natural gas November contract: $2.896 per 1,000 cubic feet, down 0.21%. Gasoline prices have increased about 16% since the beginning of the year.
Oil prices remain under pressure, with OPEC+ planning to ramp up production in December and demand from China, the world's biggest oil importer, remaining weak.
Red-hot tensions in the Middle East have provided little support to prices after Israel killed Hezbollah leader Hassan Nasrallah in a Beirut airstrike on Friday. Concerns are growing that Israel will launch a ground operation in Lebanon, with Netanyahu's government fiercely attacking Iranian-backed militias.
“We believe this price trend reflects that the geopolitical risk premium remains limited.” [amid] “Market expectations that crude supplies from Libya and Saudi Arabia may increase,” Daan Struiben, chief oil analyst at Goldman Sachs, told clients in a note on Sunday.
