Saturday, July 19, 2025

Oil Prices Take a Nosedive: Brent Crude Oil Falls Below $70, Lowest in Three Years

Yonhap News

On Tuesday, Brent crude, the global benchmark for oil prices, fell by 3%, dipping below $70 per barrel for the first time in nearly three years. According to Reuters, this significant decline was triggered by the Organization of the Petroleum Exporting Countries (OPEC), which revised its global oil demand forecast downward for the second time this year.

During trading, Brent crude prices plummeted to $69.08 per barrel, marking the lowest level since December 2, 2021. The U.S. benchmark, West Texas Intermediate (WTI), also fell to $65.82 per barrel, reaching its lowest point since May 4 of the previous year.

OPEC’s latest forecast projects a global oil demand increase by only about 2 million barrels per day this year, reducing its previous estimate by approximately 80,000 barrels per day. Also, OPEC revised its demand growth forecast for next year to 1.7 million barrels per day, 40,000 barrels less than initially expected. This adjustment comes just a month after OPEC’s last update.

In its previous outlook, OPEC cited the economic slowdown in China, the world’s largest oil importer, and the resulting decline in oil demand as reasons for the downgrade.

Wall Street investment banks are also adjusting their forecasts, with Goldman Sachs highlighting the potential impact of increased electric vehicle adoption in China on fuel demand. 

Morgan Stanley recently shared a similar outlook.

Morgan Stanley similarly noted that OPEC+ is expected to end its production cuts in December and return to previous production levels, which could lead to an oversupply in the oil market starting at the end of this year.

International oil prices have struggled recently, with Brent crude dropping 10% and WTI 8% last week. Concerns about an economic slowdown due to weaker U.S. employment and ongoing economic decline in China have contributed to the lowered oil demand projection.

On Monday, Brent rose by 1.1% and WTI by 1.5% due to hurricane forecasts in the U.S., but the following day, prices plummeted again.

As of 1:50 PM Eastern Time, Brent traded at $69.70 per barrel, a decline of $2.14 (3%) from the previous day. Overall, Brent has dropped by 9.6% this year. WTI also fell by $2.38 (3.5%), trading at $66.34 per barrel, bringing its decline this year to 7.4%.

Hot this week

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Topics

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Nvidia Stock Surges Past $170 After U.S. Clears China Chip Exports

Nvidia's stock surged over 4% after the Trump administration lifted export restrictions on H20 semiconductors to China.

Army’s New Shaving Rule Could Push Out Thousands of Black Soldiers

The U.S. Army's new shaving policy may disproportionately impact Black soldiers with shaving difficulties, raising concerns over its fairness.

Trump Slams Fed Chair Again, Demands Rates Below 1%

Trump criticizes Fed Chair Powell, insists interest rates should drop below 1%, claiming the economy is strong and inflation is nonexistent.

Related Articles