The global standard, Brent crude, fell below $70 a barrel on Tuesday afternoon for the first time since December 2021.
Following a monthly report by the major oil-producing OPEC+ group that further lowered demand projections for both 2024 and 2025, the month-ahead contract saw a 4% decline on the day.
Analysts claim that the declining outlook and rising predictions of an oil glut kept the market restrained.
They claimed that an approaching storm that would have an impact on Gulf of Mexico production was the only force pushing upward.
Since the beginning of July, oil prices have dropped sharply from levels around $90, mostly due to signs that the world’s major economies are contracting.
Automobile associations have long lamented that wholesale fuel costs have not kept up with this reduction, rising quickly but falling slowly.
Long-term oil decline should further reduce fuel prices.
According to the news, wholesale costs were at their lowest points since October 2021 last week, helped recently by the pound’s strength versus the dollar, which is based on oil prices.
