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International crude oil benchmarks fell sharply on Friday, November 8, 2024, as easing concerns over Hurricane Rafael’s impact on Gulf supply and lacklustre fiscal measures in China dampened market sentiment.

Brent crude dived $1.76 or 2.3% to settle at $73.87/barrel.

WTI fell $1.98 or 2.7% to conclude at $70.38/barrel.

With Hurricane Rafael shifting course and weakening in intensity, industry sources anticipate minimal disruption to oil output in the Gulf of Mexico. At the same time, oil investors were disappointed by China’s latest fiscal intervention, which aimed primarily at alleviating local government debt rather than boosting immediate consumption—a move that casts doubt on the pace of China’s economic recovery and, by extension, its future oil demand.

Industry experts note that despite the current price pressures, ongoing factors such as potential Middle Eastern supply constraints and the recent interest rate cut by the US Federal Reserve provide some underlying support for oil prices. 

Written by: Muhammad Hafiz