US Oil Plummets, Gas Prices On Longest Weekly Decline Since 2020

U.S. oil prices fell to the lowest levels in three months Tuesday, potentially pulling gasoline costs back closer to $4 a gallon, as investors pared bets on global demand amid forecast cuts from OPEC and a renewed surge in Covid infections in China. 

OPEC, which controls around a third of global output, trimmed its 2023 demand forecast to around 2.7 million barrels, or 2.7%, to around 30.1 million barrels per day. The cartel sees non-OPEC supplies rising by 1.7 million barrels per day.

The slower growth forecast, coupled with fresh lockdown orders for the Chinese gaming hub of Macau, as well as Shanghai, amid a surge in new Covid variant infections pulled oil price sharply lower Tuesday.

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