The decrease occurs due to the surplus of crude oil supply due to the reduction in demand forecasts for 2024 and 2025. US crude oil stands at US$70.58.
He oil price sinks this Tuesday, October 15 and the West Texas Intermediate (WTI) records its largest daily rise in more than a year. The decrease occurs due to the surplus of crude oil supply due to the reduction of demand forecasts for 2024 and 2025 made by the Organization of Petroleum Exporting Countries (OPEC).
US crude oil futures WTI collapse US$3.25 or 4.4%, US$70.58 per barrel, while Brent crude futures lose $3.19, or 4.1%, to $74.27 per barrel.
Both benchmarks fell around 2% on Monday. So far this week, they have lost about $5, nearly wiping out gains accrued following investor fears that Israel will attack Iran’s oil facilities in retaliation for the Oct. 1 missile attack.
Oil does not find a floor: demand prospects have dropped and there is less concern about supply
The Israeli Prime Minister, Benjamin Netanyahutold the United States that Israel is ready to attack Iranian non-nuclear or oil military targetsreported the Washington Post late on Monday.
Israel On Monday he expanded his objectives in his war against the Hezbollah militants in Lebanonkilling at least 21 people in an airstrike in the north of the country.
“Weakening demand has led traders to withdraw the ‘war premium’ from prices,” said Priyanka Sachdeva, senior market analyst at Philip Nova.
“However, geopolitics continue to support oil at this level. Without geopolitics in the equation, oil would have fallen further, perhaps even below $70 per barrel, amid the current weakening demand.”
Both OPEC and the International Energy Agency (IEA) this week cut their global oil demand growth forecasts for 2024.
The OPEC predicts a much greater expansion in global demand for that year than the IEA. But his “series of downward adjustments is a kind of admission of wishful thinking,” he said. John Evansfrom the PVM oil brokerage.
China customs data showed September oil imports fell from a year earlier, and the country’s economic growth is also likely to fall short of Beijing’s 2024 target.according to a survey of Reuters.
Source: Ambito
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