Oil prices remained stable on Tuesday as the expectation of additional supply entering the market, coupled with sluggish global demand growth, balanced concerns that the intensifying conflict in the Middle East could impact exports from this vital production area.
As of 00:50 GMT, Brent crude futures for December delivery rose by 13 cents, or 0.18 percent, reaching $71.83 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures for November delivery increased by 11 cents, or 0.16 percent, to $68.28 a barrel.
Demand pressures from China
The oil markets have faced pressure this year due to weaker-than-anticipated demand growth, particularly from China, which is the largest importer of crude oil. This concern was heightened on Monday when data revealed that China’s manufacturing activity contracted for the fifth consecutive month in September.
Read more: Oil prices rise amid Middle East tensions, upcoming Fed insights on monetary policy
Monthly and quarterly losses
At the close of September, Brent futures had declined by 9 percent, marking its third consecutive month of losses and the steepest monthly drop since November 2022. In the third quarter, Brent prices plummeted by 17 percent, representing the largest quarterly loss in a year. WTI also fell, down 7 percent in September and 16 percent for the quarter.
Geopolitical tensions and supply risks
Despite these demand concerns, rising tensions between Israel and Lebanon have heightened the risk that Iran, a significant oil producer and member of the Organization of the Petroleum Exporting Countries (OPEC), could disrupt oil exports in the region.
Upcoming production increases
Nonetheless, major producers are planning to boost their output before the year concludes. OPEC+, which includes OPEC members and allies like Russia, is set to increase production by 180,000 barrels per day in December.
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