Oil Prices Find Footing After Steep Dive

16 Oct 2024 , 10:05 AM

Oil climbed in early Asian trade on Wednesday, boosted by persistent anxiety over the Middle East crisis, after sliding as much as $5 this week to its lowest level since early October due to demand concerns.

On the oil demand front, both the Organisation of Petroleum Exporting Countries and the International Energy Agency reduced their predictions for global oil demand growth in 2024, with China accounting for the majority of the cuts.

Brent crude oil futures increased 24 cents, or 0.3%, to $74.49 per barrel. U.S. West Texas Intermediate crude futures fell 27 cents, or 0.4%, to $70.85 a barrel.

Oil prices fell more than 4% to a near two-week low on Tuesday, owing to a worse demand forecast and a media report that Israel would not bomb Iranian nuclear and oil sites, alleviating concerns about a supply disruption.

However, concerns about an escalation in the confrontation between Israel and Iran-backed militant group Hezbollah remain, with the US noting on Tuesday that it opposes the breadth of Israel’s air attacks in Beirut during the last several weeks.

The market will be watching for U.S. crude and fuel inventory data, which is coming on Wednesday. Analysts surveyed by Reuters projected crude stockpiles to rise by about 1.8 million barrels in the week ending October 11.

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