Oil Prices Falter Amid Global Economic Concerns

Recent weeks have seen a decline in oil prices as traders shift their focus from depleted global inventories to potential economic slowdowns. Commercial crude stocks fell in advanced economies, exacerbated by reduced U.S. inventories. Despite this, hedge funds and investors remain bearish due to worries about the global economy.

Oil prices have recently declined as traders look beyond the current reduction in global inventories and focus on potential threats from slowing major economies.

Commercial inventories of crude and refined products in OECD countries fell to 2,761 million barrels at the end of June, 120 million barrels below the ten-year seasonal average. The deficit has grown since March.

Despite this depletion, investors are wary due to economic concerns, causing oil prices to drop. The current market indicates a potential slowdown in the global economy, affecting future petroleum consumption.

(With inputs from agencies.)