Oil prices dropped sharply on Tuesday, falling over 3% amid no significant changes in market fundamentals or geopolitical tensions.
By 10:30 AM EDT, Brent crude oil was down $2.33, or 3.24%, trading at $69.51 per barrel—the lowest price in years. West Texas Intermediate (WTI) crude dropped $2.60, or 3.78%, to $66.11 per barrel.
Despite the significant drop, there have been no major changes in the fundamentals to explain the decline. Neither the American Petroleum Institute (API) nor the Energy Information Administration (EIA) released new figures today. Additionally, the United States, the world’s largest oil consumer, has not published any major economic data.
The only relevant data released today was from Reuters, which reported that China’s exports grew rapidly in August as manufacturers sought to beat upcoming tariffs. However, China’s imports increased by only 0.5%, falling short of the expected 2% and lower than the previous month’s growth.
Later today, the API will release its estimate of U.S. crude oil and oil products inventories. The EIA will provide its estimate tomorrow.
Currently, Brent crude is trading $4 lower than a week ago, and WTI is also down $4 from the previous week.
Earlier this week, Morgan Stanley revised its Brent crude forecast downward for the second time in two weeks, now predicting an average price of $75 per barrel for Q4. This is a significant reduction from its August forecast of $80 per barrel, reflecting concerns about weak demand.