Oil market extended fall, hitting two-week lows amid easing geopolitical concerns
Oil prices remained near a two-week low on Wednesday, following a 7% decline over the previous three days due to forecasts of reduced demand growth and easing concerns over the ongoing conflict in the Middle East.
Oil prices remained near a two-week low on Wednesday, following a 7% decline over the previous three days due to forecasts of reduced demand growth and easing concerns over the ongoing conflict in the Middle East.
Brent crude fell $0.03 to settle at $74.22/barrel.
WTI dropped by $0.19 to close at $70.39/barrel.
The bearish sentiment was driven in part by OPEC’s downward revision of global oil demand growth for 2024 and 2025, with China being a key factor in that year's downgrade. Additionally, the geopolitical risk premium diminished amid expectations that Israel would avoid targeting critical energy infrastructure, reducing fears of potential supply disruptions.
Despite this downward pressure, oil prices found some support ahead of an anticipated meeting between Chinese ministries and the People's Bank of China (PBOC) on October 17, where a significant treasury bond of approximately CNY6 trillion was expected to be discussed.
Written by: Muhammad Hafiz