The price of WTI oil is falling by more than 4%, falling to $71 after the IEA warned of oversupply in the market.

WTI oil prices fell more than 4%, breaking below $71 laterInternational Energy Agency (IEA) issues a report warning of excess oil in the market. Due to slow demand

The report raised concerns about tensions in the Middle East over a war between Israel and Iran. This could affect the supply of oil in the market.

At 8:02 pm Thai time, the price of West Texas crude oil (WTI) for November delivery. minus $3.09 or 4.19% to $70.74/barrel.

The IEA said global oil demand will increase by just 900,000 barrels per day this year and 1 million barrels per day next year. This is a significant reduction compared to the 2 million barrels per day at the end of the COVID-19 pandemic.

In addition, China’s oil demand fell by 500,000 barrels/day in August. This is the fourth consecutive month of decline, and crude oil production in the United States is likely to increase by 1.5 million barrels/day this year and next.

“At this time, oil transportation continues as usual. And if there is no problem that causes a lot of trouble. The market will face a lot of oil next year,” the IEA said in its October report.

Meanwhile, IEA members are ready to take action. If a tense situation in the Middle East causes oil transport to stop.

The IEA’s report coincides with that of the Organization of the Petroleum Exporting Countries (OPEC), which has reduced its forecasts for oil demand this year and next.

OPEC expects oil demand to grow by only 1.9 million barrels per day this year, down from its previous forecast of 2.0 million barrels per day.

In addition, OPEC expects oil demand to expand by 1.6 million barrels per day next year. A decrease from the previous forecast of 1.7 million barrels / day.

This is the third consecutive reduction in oil demand forecasts by OPEC.

By Kongkiat Kawirakiti