Key Points
- Crude oil futures fell as Middle East tensions ease.
- Brent oil futures dropped to $75.13, and WTI to $71.59.
- Israel’s Prime Minister is focusing on military targets, not Iranian oil facilities.
- OPEC lowered its global oil demand growth forecast for 2024.
Looma News
Crude oil futures took a hit this Tuesday morning as news broke that Middle East tensions might be cooling off. Reports indicate that Israeli Prime Minister Benjamin Netanyahu told President Joe Biden that any military action would aim at Iranian military sites, not oil facilities. This eased fears about possible supply disruptions that could have sent oil prices through the roof.
Because of this, Brent crude futures slipped to $75.13, a 3.01% drop, while WTI wasn’t far behind at $71.59, down 3.03%. In India, October crude futures also traded lower at ₹6,030, marking a 3.44% decrease. Looks like the market is reacting positively to the news that there are no immediate threats to oil supplies.
OPEC’s Adjustments
On top of that, OPEC revised its global oil demand growth forecast for 2024, cutting it by 106,000 barrels a day to 1.9 million barrels. While that’s still a solid number, it’s worth noting that it’s above the historical average from before COVID. OPEC also slightly trimmed its 2025 demand forecast.
Meanwhile, the natural gas market isn’t looking too great either, with October futures dropping to ₹207.80. Over on the NCDEX, turmeric and guargum futures had mixed results, turmeric ticked up a bit, while guargum dipped slightly. Overall, it’s a day of adjustments across the commodities board.
