The prices of oil were stable on Monday and headed for their third consecutive monthly decline, as strong supply prospects and doubts over demand outweighed fears that Israeli attacks in Lebanon and Yemen could aggravate the conflict in the East. Half.
Crude oil futures Brent for delivery in November, which expire on Monday, they lost 10 cents to $71.88. The contract for December rose 6 cents to $71.60. West Texas Intermediate futures (WTI) fell 10 cents, to $68.08 a barrel. Both benchmarks had previously gained more than $1.
Brent was on track to lose almost 9% monthly, which would be its biggest drop since November 2022. WTI was on track to lose more than 7% since the end of August.
On Monday, prices had been supported by the possibility that Iran, a key producer and member of the Organization of the Petroleum Exporting Countries (OPEC)becomes directly involved in a widening conflict in the Middle East.
Since last week, Israel has stepped up its attacks, killing Hezbollah and Hamas leaders in Lebanon and attacking Houthi targets in Yemen. All three groups have the support of Iran.
“We suspect that some oil market participants will overlook this escalation, given that there has yet to be a major disruption to physical supply and that Iran has shown no appetite to enter this nearly year-long conflict,” said Helima Croft of RBC Capital Markets.
Oil prices also reacted moderately to Beijing’s announcement of fiscal stimulus measures last week. in the second world economy and main oil importer.
Traders wonder if the measures will be enough to boost Chinese demand, weaker than expected so far this year.
Monday’s data was not encouraging for demand as it showed China’s manufacturing activity contracted for the fifth consecutive month and that the services sector slowed down sharply in September.
Instead, prices were hit by news that half a million barrels of Libyan crude could be exported again as the dispute with the central bank is resolvedand by a report that Saudi Arabia could stop targeting an oil price of $100 a barrel as OPEC+ begins to undo voluntary supply cuts since December.
Later, On Monday, markets will be waiting to hear from Federal Reserve Chair Jerome Powell for clues about the pace of monetary easing from the central bank. Seven other Fed policymakers will also speak this week, ANZ analysts said in a note.
Source: Ambito
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