Analysts ascribed the price increase to bargain hunting. Prices fell below $80 per barrel for the first time since July on Wednesday, owing to a bleak economic outlook in China and Europe. 

Prices fell below $80 per barrel for the first time since July on Wednesday, owing to a bleak economic outlook in China and Europe.

Brent futures on the Intercontinental Exchange were at $80.08 a barrel around 1pm, up 0.68% from the previous close. The December contract of West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) increased 0.61% to $75.79 per barrel.

Prices fell below $80 per barrel for the first time since July owing to a bleak economic outlook in China and Europe, according to Rahul Kalantri, vice president, commodities, Mehta Equities. He remarked that oil prices had dropped 10% in the previous eight days.

“According to EIA projections, US crude production will rise slightly this year, but fall slightly short of earlier expectations.” However, petroleum consumption is expected to fall by 300,000 barrels per day (bpd), a dramatic contrast to the prior projection of a 100,000-bpd gain. This trend has been exacerbated by a significant fall in Chinese imports, heightening concerns about oil consumption. As a result, the crude oil market experienced a huge selloff,” Kalantri explained.

Furthermore, predictions of a Eurozone recession have put pressure on crude oil prices. He believes that the remainder of today will be chaotic.

Despite fears about a decrease in major economies, India saw a 1.6% month-on-month increase in oil output in October. 

“In October, India’s oil product demand increased by 80,000 b/d, aided by increased mobility and consumption during the festive season, which began in mid-October.” Total demand increased by 197,000 b/d, or 4%, year on year, according to a study released on Wednesday by S&P Global Commodity Insights.

S&P has also raised its forecast for India’s oil consumption in 2023 to 258,000 barrels per day, up 9,000 bpd from the previous estimate due to increasing diesel sales.

With world prices falling, the Indian crude oil basket remained at $82.64 per barrel on Wednesday, according to statistics from the Petroleum Planning & Analysis Cell (PPAC). It averaged $90.08 per barrel last month, with a November average of $86.2 per barrel.