Oil prices fell for a third straight day on concerns of weak demand from China. In addition, a stronger dollar and tepid capital market sentiment contributed to the downward trend.
Brent crude fell to $84.2 a barrel after a 0.7% decline in the previous two sessions, while West Texas Intermediate hovered near $81.4.
On Tuesday, the U.S. dollar strengthened for a second day following the assassination attempt on U.S. presidential candidate Donald Trump, creating a challenging environment for commodities, including oil.
Despite being higher on the year, crude oil prices are hovering between $75 and $95.
This is due to OPEC+ supply cuts competing with concerns about consumption in China, which is cautious after the country’s slowest economic growth in five quarters.
That volatility hit a multi-year low ahead of this week’s Third Plenum, an important event that sets broad economic and political policies.
Donald Trump criticized the Federal Reserve’s recent decision to cut its benchmark interest rate by half a percentage point, calling it a “political maneuver” and suggesting that a smaller reduction would have been more appropriate.
The Bank of Japan (BOJ) has opted to keep interest rates steady at 0.25%, leading to a sharp rise in the Nikkei index, which jumped over 700 points.
On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
The Federal Reserve’s recent 50 basis point rate cut left experts divided.