Friday 22 Nov
Oil prices took a dramatic dive in early Asian trading on Tuesday, with Brent crude futures plummeting by $2.11 to $75.35 per barrel and US West Texas Intermediate (WTI) futures dropping by $2.07 to $73.76 per barrel. These declines represent a significant 2.7% and 2.8% decrease, respectively, for each benchmark.
The price plunge follows the Organization of the
Petroleum Exporting Countries' (OPEC) revised forecasts, which predict a
slowdown in global oil demand growth for both 2024 and 2025. Adding to the
bearish sentiment were reports indicating Israel's readiness to target Iranian
military installations, while carefully avoiding nuclear or oil facilities.
Israeli Prime Minister Benjamin Netanyahu
conveyed this stance to the United States, emphasizing a strategic approach
that could potentially mitigate the risk of direct disruptions to the region's
oil supply.
Both oil benchmarks had already closed nearly 2% lower on Monday, and these recent developments have further exacerbated the downward trend. OPEC's revised demand forecast and the reported Israeli military intentions are widely considered as key drivers of the current market dynamics.
