Crude oil prices drop amid surplus fears and easing Middle East concerns
Investor attention shifted to the International Energy Agency’s (IEA) monthly report, which suggested that the global inventory declines should level off in the final quarter. This development puts the market at risk of a glut if OPEC+ proceeds with its plans to increase supplies.
Crude oil prices dropped on Tuesday, 13 August, breaking a five-day streak of gains as concerns about a potential crude surplus overshadowed fears of escalating conflict in the Middle East.
Brent futures settled down $1.61, or 1.96%, at $80.69/barrel.
WTI finished down $1.71, or 2.14%, at $78.35/barrel.
While the escalating tensions in the Middle East could threaten crude supply from one of the world's leading oil-producing regions, the likelihood of a wider conflict seemed diminished.
Investor attention shifted to the International Energy Agency’s (IEA) monthly report, which suggested that the global inventory declines should level off in the final quarter. This development puts the market at risk of a glut if OPEC+ proceeds with its plans to increase supplies.
Written by: Rochelle Nguyen