Concerns Over Economic Slowdown in Central Region... WTI Falls Below $70 Per Barrel

International oil prices plummeted amid growing concerns that the global economy, including China, will slow down.

On the 6th (local time), the closing price of West Texas Intermediate (WTI) crude oil futures for January delivery on the New York Mercantile Exchange was $69.38 per barrel, down $2.94 (4.1%) from the previous day's close, falling below $70 per barrel. This is the first time in five months since July 3 that WTI futures prices have dropped below $70 per barrel.

Brent crude oil futures for January delivery on the London ICE Futures Exchange also closed at $74.30 per barrel, down $2.90 (3.8%) from the previous trading day's close. International oil prices have continued to decline since the 30th of last month, when the Organization of the Petroleum Exporting Countries (OPEC) and the non-OPEC major oil-producing countries' coalition, 'OPEC Plus' (OPEC+), announced voluntary production cuts, amid skeptical views on the move.

The increase in crude oil production by the U.S. energy sector, coupled with growing expectations of reduced oil demand due to concerns over China's economic slowdown, also pulled down international oil prices.

Earlier, on the 5th, Moody's downgraded China's sovereign credit rating outlook from 'stable' to 'negative,' citing excessive debt of local governments and state-owned enterprises as well as a slump in the real estate market.

Dennis Kisler, Chief Trading Officer at BOK Financial, said, "The oil market is currently focused more on the demand side than the supply side," adding, "There is demand destruction occurring in the fuel sector."