Oil prices lower as OPEC cuts demand outlook, US Consumer prices surpass expectations [Video]

Oil prices lower as OPEC cuts demand outlook

Oil prices were lower for the first time this week, as OPEC announced that it was adjusting its 2021 demand forecast.

On Wednesday, the Organization of the Petroleum Exporting Countries stated that it expects demand to fall to  5.82 million barrels per day for the rest of the year.

This comes after the cartel initially forecasted that demand would be 5.96 million bpd,  however revised expectations due to data from previous quarters.
Although it's 2021 outlook has been adjusted, the group maintained its forecast for 2022, expecting demand of 4.2 million bpd for next year.

Prices of WTI fell below $80 per barrel for the first time this week.

U.S. Consumer prices surpass expectations

Gold, the Dollar amongst other markets were volatile on Wednesday, as consumer prices in the U.S. rose above expectations.

Data from the Labor Department showed that its consumer price index rose by 0.4% in September, compared expectations for a 0.3% increase.

The biggest contributor to rise was attributed to food prices, which rose 0.9%, and was up 0.5% from the month prior.

This was the largest increase in food prices since April 2020, during the peak of the pandemic, and came as the cost of meats rose.

Gold hit an intraday high of $1,796, after trading at a low of $1.750 in yesterday’s session. EURUSD also rallied to a high of 1.1509, its highest point this week.