Oil prices fall as OPEC data raises demand concerns

Oil prices fell by over 1% on Tuesday, driven by demand concerns fueled by recent data from the Organization of the Petroleum Exporting Countries (OPEC) and news stories about Israeli Prime Minister Benjamin Netanyahu’s assurance that his forces would not target Iranian oil facilities.

International benchmark Brent crude fell by 1.2% to $74.55 per barrel at 9.57 a.m. local time (0657 GMT), down from the previous session’s close of $75.43.

US benchmark West Texas Intermediate (WTI) declined by 1.2% to $70.69 per barrel after closing at $71.56 in the prior session.

According to OPEC’s monthly oil market report released on Monday, global crude oil demand growth forecast for 2024 is revised down by 106,000 barrels per day (bpd) from the previous month’s assessment. Total world oil demand is anticipated to increase by 1.93 million bpd to reach 104.14 million bpd this year.

OPEC also revised down its demand growth forecast for 2025 by 100,000 bpd. The group expects demand to grow by 1.64 million bpd in 2025.

The slowdown in global oil demand is expected to be mostly driven by China. Demand in China, the world’s largest oil importing country, is predicted to increase by 580,000 bpd this year, 70,000 bpd below the increase predicted by OPEC in last month’s report.

Analysts worry that weak crude oil demand in the world’s largest oil importing country will further lower global demand.

Moreover, increased expectations that Israel will refrain from attacking Iranian oil facilities have put downward pressure on prices by alleviating supply concerns.

Israeli Prime Minister Benjamin Netanyahu assured the US that his forces will attack Iranian military sites, not the oil facilities that US President Joe Biden warned against striking, according to international media reports published Monday.

However, Israel is expected to carry out its attack on Iran before the US polls on Nov. 5, because delaying the action further would be seen by Iran as a sign of weakness.

• Benjamin Netanyahu
• Petroleum Exporting Countries
• West Texas Intermediate