Oil Extends Decline As Demand Worries Mount

“Given the severity of the move lower, I cannot rule out another large capitulation move,” said Jeffrey Halley, senior market analyst at OANDA.

Record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+ have helped support prices, but with grim economic figures being reported almost daily, the outlook for demand for oil remains bleak.

China’s factory gate prices fell for a seventh straight month in August although at the slowest annual pace since March, suggesting industries in the world’s second-biggest economy continued their recovery from the coronavirus-induced downturn.

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