Oil falls as demand outlook weakens
Published: 03:10 PM,Oct 15,2024 | EDITED : 07:10 PM,Oct 15,2024
An employee pumps petrol into a car at a petrol station in Hanoi, Vietnam. — Reuters
SINGAPORE: Oil prices slid as much as $3 to a near two-week low during Asian trade on Tuesday on the back of a weaker demand outlook and after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption.
Brent crude futures were down $2.81, or 3.6%, to $74.65 per barrel at 0640 GMT, having dropped earlier to $74.26, its lowest since Oct 2.
US West Texas Intermediate futures fell $2.72, or 3.7%, to $71.11 per barrel. The contract fell as low as $70.75, its weakest since Oct 3.
Both benchmarks had settled about 2% lower on Monday. They are down almost $5 so far this week, nearly wiping out cumulative gains made in the seven sessions up to last Friday when investors were concerned about supply risks as Israel planned to retaliate against a missile attack from Iran.
Israeli Prime Minister Benjamin Netanyahu told the US that Israel is willing to strike Iranian military targets and not nuclear or oil ones, the Washington Post reported late on Monday.
'Weakening demand has led to traders withdrawing the 'war premium' from prices,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
'However, geopolitics still continues to support oil at this level. Without geopolitics in the equation, oil would have tumbled even more, maybe even below $70 per barrel mark amid the current weakening demand narrative.' — Reuters
Brent crude futures were down $2.81, or 3.6%, to $74.65 per barrel at 0640 GMT, having dropped earlier to $74.26, its lowest since Oct 2.
US West Texas Intermediate futures fell $2.72, or 3.7%, to $71.11 per barrel. The contract fell as low as $70.75, its weakest since Oct 3.
Both benchmarks had settled about 2% lower on Monday. They are down almost $5 so far this week, nearly wiping out cumulative gains made in the seven sessions up to last Friday when investors were concerned about supply risks as Israel planned to retaliate against a missile attack from Iran.
Israeli Prime Minister Benjamin Netanyahu told the US that Israel is willing to strike Iranian military targets and not nuclear or oil ones, the Washington Post reported late on Monday.
'Weakening demand has led to traders withdrawing the 'war premium' from prices,' said Priyanka Sachdeva, senior market analyst at Phillip Nova.
'However, geopolitics still continues to support oil at this level. Without geopolitics in the equation, oil would have tumbled even more, maybe even below $70 per barrel mark amid the current weakening demand narrative.' — Reuters