Putin may meet U.S. envoy Witkoff this week during Ukraine talks
On Monday, the Kremlin announced that Russian President Vladimir Putin may meet U.S. envoy Steve Witkoff this week as part of ongoing efforts to media...
Oil prices fell 2% as OPEC downgraded its global demand forecast and China's oil imports dropped for the fifth consecutive month. Concerns over Israeli-Iran tensions also weighed on markets, with Brent settling at $77.46 per barrel and WTI at $73.83 per barrel.
Oil prices dropped 2% on Monday as OPEC revised down its expectations for global oil demand growth in 2024 and 2025, coinciding with China's oil imports declining for the fifth month in a row.
Investor confidence was not boosted by China’s stimulus efforts, while attention remained on potential Israeli strikes against Iranian oil facilities. Brent crude futures closed down $1.58, or 2%, at $77.46 per barrel, while U.S. West Texas Intermediate crude fell $1.73, or 2.29%, to $73.83 per barrel. Last week, Brent had increased by 99 cents, and WTI rose by $1.18.
After-hours trading saw Brent drop more than $4, or 5%, following reports that Israeli Prime Minister Benjamin Netanyahu informed the U.S. of Israel's willingness to target Iranian military sites, excluding nuclear or oil facilities. Additionally, U.S. heating oil futures fell 5%, and gasoline futures decreased by over 4%.
OPEC's forecast for global oil demand growth in 2024 has been revised down for the third consecutive time, largely due to lower expectations for China, which accounts for a significant portion of this year's downgrade. OPEC reduced its forecast for Chinese oil demand to 580,000 barrels per day (bpd) from 650,000 bpd.
In the first nine months of the year, China's crude imports fell nearly 3% from the previous year to 10.99 million bpd.
Decreasing demand in China is attributed to the rise of electric vehicles (EVs) and a slowdown in economic growth post-COVID-19, negatively impacting global oil consumption and prices. This negative outlook from China overshadowed market worries about potential disruptions in oil production following an Israeli response to Iran's missile attack on October 1.
The U.S. announced its decision to deploy troops and an advanced anti-missile system to Israel to enhance its air defenses. “While an attack by Israel into Iran is likely to happen, the latest reinforcing measures by the US military may have calmed the responses on both sides,” noted Dennis Kissler, senior vice president of trading at BOK Financial.
He added, “A nervous trade will remain with most fund managers remaining on the sidelines.” Meanwhile, U.S. officials have been discreetly advising Israel to carefully consider its response to avoid triggering a larger conflict in the Middle East.
President Biden has also publicly expressed his opposition to an Israeli strike on Iran’s nuclear facilities and concerns over potential attacks on Iranian energy infrastructure.
Additionally, the dollar reached a nine-week peak on Monday during light trading, which can negatively impact demand for dollar-denominated oil among buyers using other currencies.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
China and the Association of Southeast Asian Nations will send an upgraded ‘version 3.0’ free-trade agreement to their heads of government for approval in October, Chinese Foreign Minister Wang Yi said on Saturday after regional talks in Kuala Lumpur.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
OPEC+ will increase oil production by 547,000 barrels per day in September after eight members of the organisation held a brief virtual meeting on Sunday. They said the company will continue to accelerate its output hikes to regain market share.
McDonald's plans to significantly expand its investments in artificial intelligence by 2027, with India expected to play a central role in data governance, engineering, and platform development, a senior executive said on Friday.
U.S. President Donald Trump has sharply criticised Federal Reserve Chair Jerome Powell following the central bank’s decision to keep interest rates unchanged.
Microsoft’s market capitalization surpassed $4 trillion in after-hours trading on Wednesday following a stronger-than-expected earnings report for its fiscal fourth quarter, driven by robust growth in its cloud business.
The European Commission has said it does not view imposing network fees on major technology firms as a practical solution to the ongoing debate over funding the expansion of 5G and broadband infrastructure across the bloc.
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