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.
Kazakhstan's Energy Minister Yerlan Akkenzhenov met with OPEC Secretary General Haitham AlGhais in Astana today, reiterating the nation's strong commitment to the Declaration of Cooperation and joint efforts to ensure a stable global oil market.
Parviz Shahbazov, Azerbaijan’s Energy Minister, met with Haitham Al Ghais, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), on the sidelines of the Baku Energy Week.
Leaders from around the world, including the President of the EU Commission Ursula von der Leyen, will come together today to address the global challenges and opportunities of speeding up the clean energy transition.
Oil prices rose on Wednesday, driven by tighter supply from OPEC members and Russia, alongside stronger-than-expected U.S. job data indicating economic growth and higher oil demand.
Nigeria and Brazil have signed a $1 billion deal to strengthen farming, energy, and defense ties.
A preliminary U.S. intelligence report suggests strikes on Iran’s nuclear facilities have delayed the programme by only a few months, contradicting President Donald Trump’s assertion that it was completely destroyed.
Two drones suspected to be from Iran were intercepted by Israeli fighter jets outside the country's airspace on Tuesday evening, according to the Israeli military.
The US has funded a private Gaza aid group despite safety concerns and the use of military-linked firms.
European metal producers are urging the EU to restrict scrap exports, warning that rising US demand driven by Trump’s 50% tariffs threatens Europe’s green transition and efforts to cut carbon emissions.
Iran launched 18 ballistic missiles late Sunday targeting the U.S. military’s Al-Udeid Air Base in Qatar, the largest American installation in the Middle East.
Iranian missiles struck multiple locations across Israel and neighbouring regions early Friday morning, including a Microsoft office complex, according to emergency responders and local media reports.
A high-speed tram derailment in central Gothenburg, Sweden, has left at least eight people injured late on Thursday (19 June), after the vehicle slammed into a snack bar on Avenyn Avenue.
China has unveiled a mosquito-sized bionic drone designed for covert military operations and battlefield reconnaissance, marking a major advance in micro-robotics and stealth technology as part of the country’s growing focus on next-generation warfare capabilities.
Wizz Air has suspended all flights to and from Tel Aviv, Israel, and its European services to Amman, Jordan, effective immediately until 15 September due to escalating situation in the Middle East. Also, the air carrier temporarily suspended its flights between Astana, Kazakhstan, and Abu Dhabi.
Kazakhstan’s Energy Ministry, national oil and gas company KazMunayGas (KMG), and CNOOC Hong Kong Holding Limited—a subsidiary of China National Offshore Oil Corporation (CNOOC Limited)—have signed a contract for hydrocarbon exploration and production under the Zhylyoi project.
European markets rallied on Tuesday, with shares climbing more than 1% after U.S. President Donald Trump announced a ceasefire between Israel and Iran, easing geopolitical tensions and lifting investor confidence.
Oil prices fell sharply for a second day after Israel confirmed a U.S.-brokered ceasefire with Iran, easing fears that the conflict would disrupt global energy supplies.
U.S. President Donald Trump called for a major interest rate cut before Federal Reserve Chair Jerome Powell’s testimony to Congress.
Goldman Sachs economists have warned that any significant disruption to oil shipments through the Strait of Hormuz could push Brent crude prices over $100 per barrel, potentially causing a sharp rise in transport costs, inflation, and slowing global growth.
Nigeria and Brazil have signed a $1 billion deal to strengthen farming, energy, and defense ties.
A preliminary U.S. intelligence report suggests strikes on Iran’s nuclear facilities have delayed the programme by only a few months, contradicting President Donald Trump’s assertion that it was completely destroyed.
Two drones suspected to be from Iran were intercepted by Israeli fighter jets outside the country's airspace on Tuesday evening, according to the Israeli military.
The US has funded a private Gaza aid group despite safety concerns and the use of military-linked firms.
European metal producers are urging the EU to restrict scrap exports, warning that rising US demand driven by Trump’s 50% tariffs threatens Europe’s green transition and efforts to cut carbon emissions.
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