U.S. crude oil hit the lowest level since June 2023, putting the benchmark on pace for its worst week in nearly a year, as OPEC+ has failed to reassure the market about the global supply and demand balance.
U.S. crude hit a low of $67.17 earlier in the session and shed 8% for its worst week since October. The Brent global benchmark has fallen 9.8% this week.
OPEC+ delayed plans to increase production by 180,000 barrels per day until December as oil sold off steeply. The output hike will bring about 2.2 million barrels per day back onto the market through the end of next year.
Here are Friday’s closing energy prices:
- West Texas Intermediate October contract: $67.67 per barrel, down $1.48, or 2.1%. Year to date, U.S. crude has fallen 5.6%.
- Brent November contract: $71.06 per barrel, down $1.63, or 2.2%. Year to date, the global benchmark has declined 7.8%.
- RBOB Gasoline October contract: $1.89 per gallon, down nearly 3 cents, or 1.6%. Year to date, gasoline has pulled back 9.8%.
- Natural Gas October contract: $2.27 per thousand cubic feet, up 2 cents, or 0.93%. Year to date, gas has tumbled 9.5%.
Those barrels will return to the market as oil demand slows in China due to the world’s largest crude importer rapidly transitioning to electric vehicles.
Bank of America has slashed its oil forecast for 2025 to $75 for Brent, down from $80 previously, and to $71 for the U.S. benchmark from $75 previously.
Citi, meanwhile, anticipates that Brent prices will average in the $60 range next year as the market is expected to enter into a substantial surplus.