Oil prices are on the cusp of their first quarterly decline since the start of the COVID-19
pandemic in 2020 amid mounting evidence that the global economy is slowing down.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is trading near $82 U.S. a barrel,
down 22% in the third quarter that ends today (September 30).
Brent crude oil, the international standard, is also in negative territory for the July through
September period
Crude oil prices have been dragged lower by waning global demand and a strengthening U.S.
dollar, which investors continue to run to as central banks lift interest rates higher.
Oil markets are also struggling with the prospect of reduced supplies. The Organization of
Petroleum Exporting Countries and its allies (OPEC+) is scheduled to meet next week and
widely expected to announce an output cut.
Analysts are bracing for OPEC+ to cut supply by as much as one million barrels a day in coming
weeks.
The economic recovery in China is also weighing on oil prices given that it continues to be
subject to new COVID-19 lockdowns and roiled by a severe property market downturn.
