Crude oil closes: economic outlook worries weigh on crude oil futures closed sharply lower

News on September 1, the global economy slowly recovered from the pandemic, while energy prices were weighed on as central banks took measures to curb inflation and heightened concerns about the global economic outlook, but falling inventory data for three consecutive weeks helped oil prices recover some of their losses, and crude oil futures closed lower
.

According to Dow Jones market data, October futures for West Texas Intermediate crude oil on the New York Mercantile Exchange fell $2.
09, or 2.
3%, to close at $89.
55 a barrel, down 2.
3%, the lowest since August 17, and accumulated losses of 9.
2%
this month.
October Brent crude futures on the ICE Futures Exchange fell $2.
82, or 2.
8 percent, to $96.
49 a barrel, down more than 12 percent
for the month.
The most actively traded November contract fell $2.
20, or nearly 2.
3 percent
, to $95.
64.

Gasoline prices on the New York Mercantile Exchange fell 3.
3 percent to close at $2.
6059 a gallon in September, down more than 25 percent
for the month.
Heating oil fell 2.
7 percent to $3.
7154 a gallon in September, but rose 2.
5 percent this month, with both contracts expiring
at the close of trading.
Natural gas prices rose 0.
9 percent to $9.
127 per million British in October, an almost 11 percent
monthly gain.

James Williams, an energy economist at WTRG Economics, said "concerns about the economy" were a key reason for the fall in
oil prices.
"Some OPEC+ members have expressed concerns
about demand," he said.
Some Member States are increasing the possibility of
reducing (production) quotas.
Recession fears dominate OPEC's thinking
.
"

Oil prices plunged on Tuesday after a Russian news report said OPEC+ had not discussed production
cuts.
Saudi Arabia's energy minister raised the possibility of
cutting production last week.
Meanwhile, the OPEC+ Joint Technical Committee reportedly said on Wednesday that it expects the oil market to have an excess of 100,000 barrels per day from previous estimates to 900,000 barrels
per day.
The committee advises
on market fundamentals for OPEC+.

"All yesterday's news was digested as bearish on oil as the threat of OPEC+ production cuts decreased, demand expectations in Europe were lowered by poor data, and 'hot' data in the United States increased already hawkish financial flows, supporting the dollar and further weighing on oil
," analysts at Sevens Report Research wrote in a note.

Sevens Report analysts said they maintained a "neutral view" on WTI, with support at $87 a barrel and resistance between $97-$100 a barrel, "as the outlook for OPEC+ policy becomes less uncertain while global central banks remain committed to controlling inflation, even if it means dampening growth and demand
.
" "

U.
S.
crude inventories fell by 3.
3 million barrels in the week ended Aug.
26, the third consecutive weekly decline
, the U.
S.
Energy Information Administration reported Wednesday.
According to a survey conducted by S&P Global Commodity Insights, analysts expect an average of 1.
9 million barrels
to cut production.
According to sources, the American Petroleum Institute said late Tuesday that U.
S.
crude oil inventories increased by 600,000 barrels
last week.

The EIA also said gasoline inventories fell by 1.
2 million barrels last week, while distillate inventories edged up by 100,000 barrels
.
Analyst surveys expect gasoline inventories to fall by more than 1.
3 million barrels and distillate inventories by nearly 1.
2 million barrels
.
Crude oil inventories
in Cushing, Oklahoma.
The U.
S.
Energy Information Administration (EIA) said the New York Mercantile Exchange (Nymex) delivery center fell by 500,000 barrels this week and Strategic Petroleum Reserve inventories fell by 3.
1 million barrels
.