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The price of oil hit its lowest level since January this week, weighing on oil and energy exchange-traded funds.
Front month West Texas Intermediate crude oil futures contracts closed at $71.93 per barrel on Wednesday, their lowest price since hitting $70.77 on Jan. 8.
Global oil demand is on track to increase by less than 1 million barrels per day this year and next year, according to the International Emergency Agency, less than half the pace of 2023.
Demand growth is slowing at the same time that supply is expected to accelerate, with growth of 730,000 barrels per day in 2024 and 1.9 million barrels per day in 2025, according to the IEA.
“In June, Chinese oil demand contracted for a third consecutive month, driven by a slump in industrial inputs, including for the petrochemical sector,” the IEA wrote in its latest Oil Market Report. “By contrast, demand in…
