The decline was driven by slowing economic growth in China.
Oil prices fell on Friday (Oct 18), with a weekly loss exceeding 7%, largely due to the economic slowdown in China, the world’s largest importer of crude oil, according to Reuters.
West Texas Intermediate (WTI) crude for November delivery closed at $69.22 per barrel, down by $1.45 or 2.05% from the previous day. Meanwhile, December contracts for Brent crude dropped by $1.39 or 1.87%, settling at $73.06 per barrel.
For the week, both contracts experienced significant declines. Brent fell by more than 7%, while WTI saw an approximate 8% drop. This marked the biggest weekly decline since September 2, following reduced global demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) for this year and next.
China’s economy grew at its slowest pace since early last year during the third quarter. At the same time, Chinese refinery production dropped for the sixth consecutive month in September, reflecting lower fuel consumption and broader economic weakness. In the U.S., crude oil production reached a new record last week, averaging 13.5 million barrels per day (bpd) during the week ending October 11, surpassing the previous high of 13.4 million bpd set two months earlier. The U.S. Energy Information Administration (EIA) also reported a decline in oil, gasoline, and distillate inventories last week.
