Oil Prices Drop on Faltering Recovery in Demand

  • Date: 08-Sep-2020
  • Source: The Wall Street Journal
  • Sector:Economy
  • Country:Saudi Arabia
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Oil Prices Drop on Faltering Recovery in Demand

Oil prices fell to their lowest level in more than two months Tuesday, under pressure from a stalling recovery in demand that has prompted Saudi Arabia to discount its crude exports.

Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, fell 3.4% to $38.43 a barrel in New York, their lowest price since late June. Brent-crude futures, the international benchmark, slipped 1.3% to $41.45 a barrel. WTI was partly catching up with Monday's drop in Brent prices, when U.S. markets were closed for Labor Day.

Record oil imports by China, the return of automobiles to U.S. roads and steep production