Oil prices plunge 20% from year's peak on weaker U.S., China demand

Oversupply likely to persist even if Saudi Arabia continues production cuts

20231117N Cushing Oklahoma

Crude oil inventories in Cushing, Oklahoma, where many pipelines and refineries are located, have hit the highest level in two months. © Reuters

YUTA KOGA, Nikkei staff writer

TOKYO -- Crude oil prices have fallen 20% from a September high to a four-month low as economic slowdowns in the U.S. and China, the two largest consumers, lead to widespread expectations that demand will weaken.

West Texas Intermediate crude oil futures closed at $72.90 on Thursday, down 5% from Wednesday and the lowest level since early July. Prices rebounded somewhat to the $74 level on Friday morning.

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