Israeli Prime Minister Benjamin Netanyahu has told the US that Israel is willing to attack Iranian military targets (Photo: Reuters)
Oil prices fell 3 percent in early Asian trading on Tuesday after a media report said Israel is keen not to attack Iranian oil targets, easing fears of a supply disruption, and after OPEC reduced its outlook for global oil demand growth in 2024 and 2025.
Both benchmarks fell 3 percent in early trading Tuesday, following a 2 percent drop on Monday. Brent crude futures fell $2.27 to $75.19 a barrel, while U.S. West Texas Intermediate futures fell $2.22 to $71.60 a barrel by 0127 GMT.
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Prices have fallen about $4 this week, nearly wiping out cumulative gains made in the seven sessions through last Friday, when investors were worried about supply risks as Israel planned to retaliate against a missile attack by Iran.
Israeli Prime Minister Benjamin Netanyahu has told the United States that Israel is willing to attack Iranian military targets and not nuclear or oil targets, the Washington Post reported Monday.
OPEC on Monday cut its forecast for global oil demand growth in 2024 and also lowered its projection for next year.
“This is the third consecutive monthly downgrade, suggesting its previously optimistic forecasts have to be pulled back further,” analysts at ANZ Research said in a note on Tuesday.
“(Iraq) is still not making any progress on the additional cuts it promised to offset excess production,” ANZ said.
Also weighing on prices was a decline in crude shipments to the world’s largest oil importer, China, during the first nine months of the year, with data showing imports fell nearly 3 percent from last year.
China accounted for the bulk of OPEC’s 2024 cut, as it cut its growth forecast for the country to 580,000 barrels per day (bpd) from 650,000 bpd.
Deflationary pressures in China worsened in September, according to official data released Saturday. A news conference the same day left investors wondering about the full size of a stimulus package to revive the fortunes of the world’s second-largest economy.
First published: October 15, 2024 | 8:45 a.m. IS
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