Brent crude prices fell nearly a percentage point on Tuesday, with futures price currently at US$71.15 a barrel.
US crude, meanwhile, fell to a 16-month low of US$68.30 a barrel.
The dip in prices follows a lower demand forecast from OPEC.
In its September report published today, the cartel revised its forecast for global oil demand growth in 2024 downward to around two million barrels per day (mb/d), representing an adjustment of 80,000 barrels per day (tb/d).
Looking ahead to 2025, global oil demand growth has also been revised down by 40 tb/d, now standing at 1.7 mb/d.
Non-OECD nations are again set to lead this increase, with growth of around 1.6 mb/d, spurred by countries such as China, India, and those in the Middle East and Other Asia.
“OPEC+ has reiterated its cautious, proactive, and preemptive stance by extending production cuts by two more months,” said analysts at UBS.
“Compensation cuts by Iraq and Kazakhstan after previous overproduction, along with lower Libyan output, should tighten the market, in our view.
“While oil prices are likely to stay volatile in the near term, we retain a positive outlook and expect prices to recover from current levels over the coming months.
“Hence, we continue to recommend that risk-seeking investors sell the downside price risks in crude oil.”