Oil Stabilizes Following 7% Plunge

21 Oct 2024 , 09:38 AM

After falling more than 7% last week due to concerns about demand in China, the world’s largest oil importer, and a reduction in anxiety about possible supply interruptions in the Middle East, oil prices steadied in early trade on Monday.

Due to the slowing expansion of the Chinese economy and the declining risk premiums in the Middle East, those were the contracts’ largest weekly declines since September 2. The chance to “deal with Israel and Iran in a way that ends the conflict for a while” exists, according to U.S. President Joe Biden’s statement on Friday.

Brent crude futures had increased by 8 cents, or 0.11%, to $73.14 per barrel. At $69.32 per barrel, U.S. West Texas Intermediate crude futures increased by 10 cents, or 0.14%.

Last week, Brent had dropped more than 7%, and WTI had dropped about 8%.

However, the Middle East crisis worsened over the weekend when Israel declared on Sunday that it was getting ready to strike locations in Beirut, the capital of Lebanon, that were connected to Hezbollah’s financial activities.

As expected, China lowered benchmark lending rates on Monday morning as part of a larger set of stimulus measures to boost the economy.

According to data released on Friday, China’s GDP expanded in the third quarter at its slowest rate since early 2023.

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