Oil prices slide 3% on demand woes, Israel-Iran report

Investing.com– Oil prices fell sharply in Asian trade on Tuesday, extending recent losses amid growing concerns over a demand slowdown, while a report suggesting that Israel will not attack Iranian oil facilities also weighed. 

Crude prices tumbled around 3% on Monday after top importer China logged a fifth straight monthly decline in oil imports, spurring fears of weak demand. These fears were exacerbated by the Organization of Petroleum Exporting Countries cutting its oil demand outlook for a third consecutive month.

Brent oil futures expiring in December fell 3% to $75.16 a barrel, while West Texas Intermediate crude futures fell 3% to $71.03 a barrel by 21:19 ET (01:19 GMT).

Demand fears grow on OPEC cut, China concerns 

Fears of slowing oil demand were a major weight on prices, especially following somewhat underwhelming signals from top importer China.

China’s Ministry of Finance over the weekend outlined a slew of fiscal measures to support the economy. But traders were underwhelmed by a lack of clarity on the timing and scale of the measures, as well as a lack of clear measures aimed at supporting private consumption.

Data on Monday also showed China’s oil imports fell for a fifth consecutive, signaling that weak economic conditions were chipping away at China’s appetite for crude.

Fears of slowing demand were exacerbated by the OPEC cutting its 2024 and 2025 global oil demand forecasts for a third consecutive month. 

The cartel expects 2024 oil demand growth of 1.93 million barrels per day, down from prior forecasts of growth of 2.03 million bpd. The cartel cited China as a key motivator of the downgrade. 

Prospect of less severe M.East escalation dents oil 

Oil prices were also dented by the prospect of a less severe escalation in Middle East tensions, after a report on Monday said that Israel will not attack Iran’s oil and nuclear facilities. 

Such a potential strike was expected to mark a major escalation in the conflict, and had seen traders attaching a greater risk premium to oil on expectations of the attack.

Fears of all-out war in the Middle East were a major boost to oil prices in recent weeks, especially after Iran launched a missile strike against Israel earlier in October. Focus is now squarely on Israeli retaliation. 

This post is originally published on INVESTING.

  • Related Posts

    California to vote on stricter rules for low carbon fuels policy

    (Reuters) – California regulators will vote on Friday on whether to toughen a policy aimed at boosting low-carbon fuels to slash greenhouse gas emissions from the transportation sector and meet…

    South Africa concerned Trump election will impact climate talks

    By Tim Cocks JOHANNESBURG (Reuters) – South Africa is concerned by the impact Donald Trump’s election as the next president of the United States may have on talks to tackle…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Return on Capital Employed Meaning, Formula. Why Is ROCE Important?

    • November 8, 2024
    Return on Capital Employed Meaning, Formula. Why Is ROCE Important?

    California to vote on stricter rules for low carbon fuels policy

    • November 8, 2024
    California to vote on stricter rules for low carbon fuels policy

    XAUUSD: Elliott Wave Analysis and Forecast for 08.11.24 – 15.11.24

    • November 8, 2024
    XAUUSD: Elliott Wave Analysis and Forecast for 08.11.24 – 15.11.24

    South Africa concerned Trump election will impact climate talks

    • November 8, 2024
    South Africa concerned Trump election will impact climate talks

    Ebury Kicks Off as Official FX Partner of C.D. Leganés for Global Transactions

    • November 8, 2024
    Ebury Kicks Off as Official FX Partner of C.D. Leganés for Global Transactions

    WTI Crude Oil: Elliott Wave Analysis and Forecast for 08.11.24 – 15.11.24

    • November 8, 2024
    WTI Crude Oil: Elliott Wave Analysis and Forecast for 08.11.24 – 15.11.24