World oil prices continue to fall - Reuters

Oil prices have fallen to a two-week low amid a reduced threat to supplies in the Middle East following progress in ceasefire talks in Gaza and deteriorating economic performance in China, which has affected global fuel demand. UNN writes about this with reference to Reuters.

Details

Oil prices dropped by about 1% to a two-week low on Tuesday due to easing supply concerns in the Middle East after Israel agreed to a proposal to resolve the conflict that had been holding up a ceasefire in Gaza. In addition, economic weakness in China weighed on fuel demand.

Futures for Brent crude oil for October delivery fell 46 cents, or 0.6%, to $77.20 per barrel. Futures for US West Texas Intermediate (WTI) for September delivery fell 33 cents, or 0.4%, to $74.04 per barrel on the last day of the previous month.

The more actively traded October futures for WTI oil lost 49 cents to $73.17 per barrel. 

OPEC+, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia, has noted that it will be difficult for the market to absorb the planned supply increase from October unless global oil demand starts to grow faster.

Saudi Arabia, the world's largest oil exporter, reported that in June, crude oil exports fell to 6.047 million barrels per day, down from 6.118 million barrels per day in May.

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Concerns about fuel demand in the US, the world's largest economy, pushed heating oil futures prices to their lowest level since May 2023 for the second day in a row. The fuel oil spread, which reflects refinery profitability, remained at its lowest level since November 2021.

Recall 

Oil fell in price, following a stock market sell-off triggered by fears of a US recession, although the decline was limited by the loss of supply from Libya and concerns that the spread of the conflict in the Middle East could further affect crude oil supplies.

US oil inventories rise after six consecutive declines - WSJAug 14 2024, 09:19 PM • 25118 views