Oil prices fell by 3 percent on Tuesday following a media report indicating that Israel is willing to refrain from targeting Iranian oil facilities, which alleviated concerns about potential supply disruptions. This decline also came after OPEC revised its forecasts for global oil demand growth for 2024 and 2025 downward.
Both oil benchmarks dropped 3 percent in the early session on Tuesday, building on a 2 percent decrease from Monday. Brent crude futures fell by $2.27 to $75.19 per barrel, while U.S. West Texas Intermediate futures decreased by $2.22, reaching $71.60 per barrel as of 0127 GMT.
Read more: Oil prices fall on weak Chinese data and Middle East instability
Overall, prices have decreased by approximately $4 this week, nearly erasing the gains accumulated during the previous seven sessions when investors were increasingly worried about supply risks. On Monday, OPEC reduced its outlook for global oil demand growth in 2024 and adjusted its projections for the following year as well.
China was the primary contributor to OPEC’s 2024 downgrade, with the organization lowering its growth forecast for the country to 580,000 barrels per day (bpd) from an earlier estimate of 650,000 bpd.
Recent official data revealed that deflationary pressures in China intensified in September. A press conference held on the same day left investors uncertain about the overall magnitude of a stimulus package aimed at revitalizing the world’s second-largest economy.
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