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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.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
A Polish Air Force pilot was killed on Thursday when an F-16 fighter jet crashed during a training flight ahead of the 2025 Radom International Air Show.
YouTube TV and Fox have reached a distribution agreement that will keep Fox News, Fox Sports and other Fox channels available to subscribers, the companies confirmed on Thursday.
The S&P 500 and Dow Jones Industrial Average closed at record highs on Thursday (28 August), after Nvidia’s quarterly report fell short of investors’ lofty expectations but confirmed that demand for artificial intelligence (AI) infrastructure remains strong.
Malaysia Prime Minister Anwar Ibrahim said he intends to convene a summit of the Regional Comprehensive Economic Partnership in October, local media reported on Wednesday.
The Organisation for Economic Co-operation and Development (OECD) reported on Tuesday that G20 countries’ international goods trade rose slightly in the second quarter of 2025, mainly because imports into the United States fell sharply after rising in the first quarter.
The S&P 500 closed lower on Monday (25 August) as investors turned their attention to Artificial Intelligence (AI) chipmaker Nvidia’s upcoming quarterly results, following Friday’s rally that saw the Dow Jones Industrial Average close at a record high.
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