Oil prices plunge on demand worries

15 Oct 2024 , 09:46 AM

Oil prices fell $2 in early Asian trade on Tuesday after OPEC cut its forecast for global oil demand growth in 2024 and 2025, and news reports said Israel is willing to hit Iranian military targets rather than nuclear or oil targets.

Brent crude prices declined $2.11, or 2.7%, to $75.35 per barrel, while U.S. West Texas Intermediate crude futures fell $2.07, or 2.8%, to $73.76 per barrel. Both benchmarks closed approximately 2% down on Monday.

Fears of declining oil demand were a huge drag on prices, especially after some disappointing indications from top importer China.

Over the weekend, China’s Ministry of Finance announced a series of fiscal measures to strengthen the economy. However, merchants were disappointed by a lack of clarity about the timing and scope of the initiatives, as well as a lack of specific steps to stimulate private consumption.

On Monday, data indicated that China’s oil imports declined for the fifth straight month, indicating that dismal economic conditions were reducing China’s thirst for petroleum.

According to news reports, Israeli Prime Minister Benjamin Netanyahu informed the United States that Israel is willing to hit Iranian military targets rather than nuclear or oil targets.

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