Oil prices slumped to their lowest level in more than two months Tuesday, under pressure from a stalling recovery in demand and planned production expansions by OPEC that threaten to add to an existing glut of crude. Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, tumbled 8% to $36.58 a barrel in New York, their lowest price since mid-June. 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 cuts fueled a rebound after crude prices crashed this spring. But Chinese purchases have slowed since mid-July, the comeback in American gasoline demand has stalled and the Organization of the Petroleum Exporting Countries is boosting output.

Source: Wall Street Journal September 08, 2020 10:52 UTC