Oil prices decline Tuesday as U.S. Secretary of State Antony Blinken renewed diplomatic efforts for a ceasefire in the Middle East, coupled with persistent concerns over slowing demand growth in China, the world’s largest oil importer.
Brent crude futures for December delivery fell by 19 cents, or 0.3%, to $74.10 a barrel by 0350 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures for November delivery decreased by 18 cents, trading at $70.43 a barrel on the final day of that contract. The more actively traded WTI futures for December also saw a dip, losing 14 cents, or 0.2%, to $69.90 per barrel.
This decline comes after both Brent and WTI had settled nearly 2% higher on Monday, recovering some of the losses incurred in the previous week when prices dropped more than 7%.
Market participants remain on edge as fighting in the Middle East shows no signs of abating, raising fears of potential disruptions to oil supply, particularly amid speculation about Israel’s anticipated retaliation against Iran.
The dual pressures of geopolitical instability and economic data indicating a slowdown in Chinese oil demand are causing traders to reassess their positions. While the market had previously rallied on fears of supply disruptions, the current sentiment reflects a more cautious approach as global economic indicators suggest a less robust demand outlook.
As diplomatic efforts continue and the situation in the Middle East evolves, market observers will be closely monitoring both geopolitical developments and economic data to gauge future price movements in the oil sector.
