Oil prices fell sharply for a third straight session today as the Organization of the Petroleum Exporting Countries lowered its outlook for global oil demand growth and the International Energy Agency forecasted a significant oil surplus.
In the global crude market, Brent crude was trading over three and a half per cent down at 74 dollars and 60 cents per barrel. The U.S. West Texas Intermediate (WTI) was also trading nearly four per cent down at 70 dollars and 90 cents per barrel when reports last came in.
Brent crude and West Texas Intermediate futures fell 3% as Israel’s non-targeting of Iranian oil eased supply fears. OPEC’s lowered demand growth forecasts for 2024 and 2025 contributed to this decline, alongside reduced crude shipments to China and deflationary pressures.
Both benchmarks plunged 3% in early trade on Tuesday, following a 2% drop on Monday. Brent crude futures were down $2.27 at $75.19 per barrel, while U.S. West Texas Intermediate futures fell $2.22 to $71.60 per barrel as of 0127 GMT.
Prices have fallen about $4 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 has told the U.S. that Israel is willing to strike Iranian military targets and not nuclear or oil ones, the Washington Post reported on Monday.
OPEC on Monday cut its forecast for global oil demand growth in 2024 and also lowered its projection for next year.