Oil market settled lower on Friday but registered the second consecutive weekly gains
International oil benchmarks continued their downward trend on Friday, October 11, 2024, as investors grappled with a complex set of factors influencing the market, including the impact of Hurricane Milton on fuel demand in Florida, the potential for economic stimulus in China, and escalating geopolitical tensions between Israel and Iran.
International oil benchmarks continued their downward trend on Friday, October 11, 2024, as investors grappled with a complex set of factors influencing the market, including the impact of Hurricane Milton on fuel demand in Florida, the potential for economic stimulus in China, and escalating geopolitical tensions between Israel and Iran.
Brent crude dropped by 36 cents to close at $79.04/barrel.
WTI slipped by 29 cents to settle at $75.56/barrel.
Despite the daily losses, both benchmarks managed to secure a second consecutive week of gains.
Hurricane Milton, which struck Florida on Thursday, caused significant destruction. While gasoline demand surged in the days leading up to the hurricane as residents prepared for the storm, post-disaster consumption is expected to contract, raising questions about the near-term demand recovery in one of the United States' largest fuel markets.
Market sentiment was further dampened by anticipation surrounding China’s upcoming announcement on October 12, where the government is expected to unveil details of a potential economic stimulus package. China's slowing oil consumption and sluggish economic growth have cast a long shadow over global demand this year.
Written by: Muhammad Hafiz