Oil Futures Trade at Five-Month Low on Demand Worries

Crude oil futures are lower as the market frets about weaker demand leading to oversupply and doubts about OPEC+ commitment to additional 1Q output cuts. “Spot oil prices are now flirting around crucial technical levels that if breached to the downside will cause prices to stumble towards the high-mid $60 dollar level,” says Peter Cardillo, chief market economist at Spartan Capital, in a note. He says that API reported a small build in crude inventories last week against expectations of a draw. The EIA is due to report oil stocks at 10:30 a.m. EST. A draw of 1 million barrels is expected, according to a Wall Street Journal survey of traders and analysts. WTI for January delivery is off 0.7% at $71.71 a barrel, its lowest since July, and February Brent is down 0.8% at $76.55.