Oil prices have dropped practically to a two-decade minimum on Tuesday due to weak economic data from China and expectations of rising temperatures in other regions, which led to a decrease in demand forecasts.
As a result of trading yesterday, it can be noted that oil prices have declined due to pessimistic data on the state of the economy in China, the largest consumer of oil in the world. This event has caused investors to panic, which may reduce demand for energy resources.
Moreover, expectations of rising temperatures in climatic zones, where significant oil and gas consumption is observed, have also influenced the market, leading to concerns about the stability of demand.
Experts note that the current situation in the global markets suggests the possibility of further declines in energy prices if trends continue.
"We see that the impact of weak data from China and climate forecasts creates a negative sentiment in the market and could lead to further decreases in oil demand," noted one of the analysts.
