2024-10-15 23:25:00
Oil fell as news that Israel may refrain from attacking Iran‘s oil infrastructure eased concerns about potential supply disruptions, leaving traders’ focus back on expect a significant glut early next year.
West Texas Intermediate fell more than 4% to below $71 a barrel, while Brent, the international benchmark, fell below $75 a barrel.
Prices pared some losses after China’s housing and finance ministries announced plans to hold a joint meeting with the country’s central bank on Thursday.
The Washington Post reported that Israeli Prime Minister Benjamin Netanyahu told the Biden administration that it is willing to attack military targets other than oil or nuclear facilities in Iran, Israel said it was considering US warnings against attacks on Iran’s energy facilities , but that he would act based on his own assessments.
While the conflict poses a threat to the region’s energy infrastructure, the oil market will face a glut in early 2025, the International Energy Agency said on Tuesday. The agency made small cuts to its demand growth forecasts and said spare capacity in OPEC+ countries is near record levels.
Oil prices have been on a rollercoaster ride in recent weeks as traders watch the escalating conflict in the Middle East – the source of about a third of the world’s oil supply – after Israel promised significant retaliation for an Iranian missile on 1 October. The crisis has fueled concerns about slowing growth in key markets, including China.
Brent fell 3.4% on Tuesday. A new briefing Thursday from China’s finance ministry could provide more details on measures to support China’s sagging real estate sector and boost economic growth.
To add to the downward pressure on prices, OPEC has now admitted that demand for oil may weaken, cutting its forecasts for this year and for the third month in a row.
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