Oil prices decline as demand concerns persist

Oil prices were lower on Wednesday as concerns over demand growth persist, with coronavirus cases rising in parts of the US and Europe.

The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday, Oct. 13, lowered its forecast on global oil demand growth in 2021.

The group now expects oil demand to rise by 6.54 million barrels per day (bpd) next year to 96.84 million bpd, 80,000 bpd less than its forecast a month ago, due to economic repercussions of the coronavirus pandemic.

Meanwhile, the International Energy Agency in its annual World Energy Outlook report said the world’s response to COVID-19 can reshape the future of energy markets.

In terms of trading, Brent crude was trading down 0.3% at $42.32 a barrel, at 8.50 am Makkah time.

US West Texas Intermediate (WTI) crude futures also slipped 0.3% to $40.08 a barrel.

American Petroleum Institute’s estimates on US stockpiles due for release later today